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 Credits Notes This balance equals the balance reported by the bank. Cash 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 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 still 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. 8B'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 Saved Help Save & Supplies Expense 2,820 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. Income Ta xpense Totals $ 76,300 $ 76,300 Prepare a classified balance sheet for the year ended September 30. (Amounts to be deducted should be indicated by sign.) a minus BILL'S BOARDS INC. Balance Sheet