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's 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 Debits $ 18,300 Account Name Cash Credits Notes This balance equals the balance reported by the bank. A customer ordered $1,920 of advertising services to be provided in October. The accountant recorded this service by debiting Accounts Receivable and crediting Service Revenue. Starting January 1, 88 agreed to pay $960 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 $210 on hand on September 30. 88 bought scaffolding and billboards in October last 1,920 Accounts Receivable 640 Prepaid Rent Supplies 4,000 Equipment year. O Because the equipment was bought at the beginning of %2. Accumulated Depreciation Accumulated Depreciation $. e Because the equipment was bought at the beginning of the fiscal year, no depreciation is carried forward from prior years. Accounts Payable 1,510 BB purchased and received $1,510 of supplies used for creating advertising displays. The supplier is to be paid in October. Deferred Revenue 1,530 This balance relates to $1,530 cash paid by a customer in August for advertising from September 1- November 30. Salaries and Wages Payable e BB's employees are stil1 waiting to be paid for the last half of September. 620 BB hasn't paid the $620 tax owed from the last fiscal year- Income Tax Payable Common Stock Retained Earnings 3,020 BB has issued 6,010 shares for $3,020 cash. 11,420 BB started business a few years ago, so this is the total accumulated earnings up to October 1 of last year. Service Revenue 58,200 BB has provided $6,010 of services for which it hasn't yet billed customers or recorded in its accounting records. BB's employees earn $6, 100 per month. The employees were paid in full on August 31, and were paid again on September 15. About $1,000 of the usefulness of the equipment's $4, 000 cost has been used up during the current fiscal year. 88 incurs a small cost to rent the land on which its billboards are located. Rent for the current year has been paid in full. 88's accountant expensed $2,820 of supplies purchased during the year because he assumed the supplies would be completely used by year-end. AS noted above, he was wrong- Salaries and Nages Expense 48,100 Depreciation Expense 520 Rent Expense Supplies Expense 2,820 sessment i Savod Help Se nas been paia in TUII. BB's accountant expensed $2,820 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's tax rate is 20% of income before tax. Supplies Expense 2,820 Income Tax Expense $ 76,300 $ 76,300 Totals Prepare the adjusting journal entries for the year ended September 30. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 4. Record the entry to fix the premature recording of advertising revenue. Note: Enter debits before credits. Required information Journal entry worksheet 6. 3 Record the entry to update the rent accounts. Note: Enter debits before credits. Transaction General Journal Record entry Clear entry Cequired information Journal entry worksheet 4. 5 . 6 Record the depreciation on equipment for the period. Note: Enter debits before credits. Transaction General Journal Debit Record entry Clear entry View Prev 21 S em Required information Journal entry worksheet 8. Record the entry to update deferred revenue. Note: Enter debits before credits. Debit Cre General Journal Transaction View Clear entry Record entry Prev 2. to search Required information Journal entry worksheet Record the entry to accrue revenue not yet billed. Note: Enter debits before credits. Debit General Journal Transaction Clear entry Record entry Required information Journal entry worksheet 8. 3 4 Record the entry to accrue unpaid wages. Note: Enter debits before credits. Debit Credit General Journal Transaction View general journal Clear entry Record entry .*. 1 2 3 of 8 Prev ch Required infomation Journal entry worksheet 4 Record the entry to correct the supplies accounts. Note: Enter debits before credits. General Journal Transaction Record entry Clear entry Journal entry worksheet 4 Record the entry to accrue income taxes for the year. Note: Enter debits before credits. Crec Debit General Journal Transaction