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. Account Name Cash Accounts Receivable Prepaid Rent Supplies Equipment Accumulated Depreciation Accounts Payable Deferred Revenue BILL'S BOARDS Unadjusted Trial Balance At September 30 Debits Credits Notes $ 16,800 This balance equals the balance reported by the bank. 1,520 A customer ordered $1,520 of advertising Services to be provided in October. The accountant recorded this service by debiting Accounts Receivable and crediting Service Revenue. 640 Starting January 1, BB 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 $220 on hand on September 30. 4,482 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. 1,618 BB purchased and received $1,610 of supplies used for creating advertising displays. The supplier is to be paid in October 1,260 This balance relates to $1,268 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. 410 BB hasn't paid the $410 tax Owed from the last fiscal year. 1,920 BB has issued 3,829 shares for $1,920 cash. 7.210 BB started business a few years ago, so this is the total accumulated earnings up to October 1 of last year. 61,490 BB has provided $3,810 of services for which it hasn't yet billed customers or recorded in its accounting records. 47,482 BB employees earn $5,400 per month. The employees were paid in full on August 31, and were paid again on September 15. About $1,100 of the usefulness of the equipment's $4,480 cost has been used up during the current fiscal year. 320 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. 2,820 BB accountant expensed $2,82e 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 2ex of income before tax. $ 73,988 $ 73,980 Salaries and Wages Payable Income Tax Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Depreciation Expense Rent Expense Supplies Expense Income Tax Expense Totals Post the beginning balances and adjusting entries to the following T-sccounts. Cach Account Rosalvable Debit Credit Debit Beginning Balance 16.800 Beginning Balance 1.520 Credit Ending Balance 16.800 Ending Balance 1.520 Prapald Rent Supplies Credit Credit Debit Beginning Balance Debit Beginning Balance Ending Balance Ending Balance Equipment Credit Acoumulated Depreciation Det Beginning Balance Debit Beginning Balance Credit Ending Balance Ending Balance Accounts Payable Deferred Rovanup Credit Credit Debit Beginning Balance Debit Beginning Balance Ending Balance Ending Balance 0 Income Tax Payable Salaries and Wages Payable Debit Credit Beginning Balance Credit Debit Beginning Balance Ending Balance Ending Balan 0 Common Book Retained Earnings Credit Credit Debit Beginning Balance Debit Beginning Balance Ending Balance Ending Balance Service Revenue Credit Debit Beginning Balance Balaries and Wages Expanse Debat Credit Beginning Balance Ending Balance Ending Balance Rent Espanca Depreciation Expense Debit Beginning Balance Credit Credit Debat Beginning Balance Ending Balance Ending Balance Bupplies Expande Income Tax Expense Credit Credit Debit Beginning Balance Debat Beginning Balance Ending Balance Ending Balance Prepare an adjusted trial balance as of September 30. Credit BILL'S BOARDS Adjusted Trial Balance At September 30 Account Titles Debit Cash $ 16,800 Accounts Receivable 3,810 Prepaid Rent Supplies Equipment Accumulated Depreciation Accounts Payable Deferred Revenue Salaries and Wages Payable Income Tax Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Depreciation Expense Rent Revenue Supplies Expense Income Tax Expense Totals S 20,610 S 0