Required information Bill's Boards (BB) is an outdoor advertising company founded by William Longfall. William knows very little accounting so he hired a friend to "keep the books." Unfortunately, William did not review his friend's work and now it seems his friend has made a mess of the accounting records. William has provided you the following list of unadjusted account balances at BB September 30 fiscal year-end. You have reviewed the balances with William and made notes shown in the right column. BILL'S BOARDS Unadjusted Trial Balance At September 30 Credits Account Name Cash Debits $ 12,400 Accounts Receivable 810 Prepaid Rent 1,360 Supplies Equipment Accumulated Depreciation Accounts Payable 0 6,000 $ 0 2,310 0 Deferred Revenue 1,410 Salaries and Wages Payable Income Tax Payable 510 Common Stock 2,410 Retained Earnings 9,110 Service Revenue 57,610 0 Salaries and Wages Expense 47,700 Depreciation Expense Rent Expense 680 Supplies Expense 4,410 Income Tax Expense Totals 0 $ 73,360 $ 73,360 Notes This balance equals the balance reported by the bank. A customer ordered $810 of advertising services to be provided in October. The accountant recorded this service by debiting Accounts Receivable and crediting Service Revenue. Starting January 1, BB agreed to pay $2,040 cash to rent the land on which its billboards are located, for the January- December period. The accountant adjusted this account on April 30 but has not adjusted it since. BB still has supplies costing $510 on hand on September 30. BB bought scaffolding and billboards in October last year. Because the equipment was bought at the beginning of the fiscal year, no depreciation is carried forward from prior years. BB purchased and received $2,310 of supplies used for creating advertising displays. The supplier is to be paid in October. This balance relates to $1,410 cash paid by a customer in August for advertising from September 1-November 30. BB employees are still waiting to be paid for the last half of September. BB hasn't paid the $510 tax owed from the last fiscal year. BB has issued 4,810 shares for $2,410 cash. BB started business a few years ago, s0 this is the total accumulated earnings up to October 1 of last year.. BB has provided $4,820 of services for which it hasn't yet billed customers or recorded in its accounting records. BB employees earn $5,700 per month. The employees were paid in full on August 31, and were paid again on September 15. About $1,500 of the usefulness of the equipment's $6,000 cost has been used up during the current fiscal year. BB incurs a small cost to rent the land on which its billboards are located. Rent. for the current year has been paid in full. BB accountant expensed $4,410 of supplies purchased during the year because he assumed the supplies would be completely used by year-end. As noted above, he was wrong. BB tax rate is 20% of income before tax. 1 No Transaction a Service Revenue Accounts Receivable 2 b Rent Expense Prepaid Rent 3 4 d Depreciation Expense Answer is complete and correct. General Journal Accumulated Depreciation Deferred Revenue Service Revenue 5 e Accounts Receivable Service Revenue 6 f Salaries and Wages Expense Salaries and Wages Payable > > Debit Credit 810 810 850 850 1,500 1,500 470 470 4,820 4,820 2,850 2,850 7 g Supplies Supplies Expense 510 510 8 h Income Tax Expense 922 Income Tax Payable 922 Post the beginning balances and adjusting entries to the following T-accounts. Debit Beginning Balance Ending Balance Cash Credit Prepaid Rent Debit Credit Beginning Balance Ending Balance Accounts Receivable Debit Credit Beginning Balance Ending Balance 0 Supplies Debit Credit Beginning Balance Ending Balance Equipment Accumulated Depreciation Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance 0 Ending Balance 0 Accounts Payable Deferred Revenue Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance 0 Salaries and Wages Payable Income Tax Payable Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance 0 Ending Balance 0 Common Stock Retained Earnings Debit Credit Debit Credit Beginning Balance Beginning Balance. Ending Balance 0 Ending Balance 0 Service Revenue Salaries and Wages Expense Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Depreciation Expense Rent Expense Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance 0 Supplies Expense Income Tax Expense Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance 0 Ending Balance 0 Required: Prepare an adjusted trial balance as of September 30. BILL'S BOARDS Adjusted Trial Balance Account Titles Debit Credit Totals $ 0 $ 0 Required: Prepare an income statement for the year ended September 30. BILL'S BOARDS Income Statement 0 0 Required: Prepare a statement of retained earnings for the year ended September 30 BILL'S BOARDS Statement of Retained Earnings For the Year Ended September 30 Beginning Balance $ 9,110 Add: Net Income Ending Balance $ 9,110 Required: Prepare a classified balance sheet for the year ended September 30. (Amounts to be deducted should be indicated by a minus sign.) BILL'S BOARDS Balance Sheet $ 0 0 0 0 $ 0 $ 0