Saved Help Save 8 Port 4 of 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 Be 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 BILL'S BOARDS Unadjusted Trial Balance At September 30 Debits Credits Notes $ 12,600 This balance equals the balance reported by the bank. 1,120 A customer ordered $1,120 of advertising services to be provided in October. The accountant recorded this service by debiting Accounts Receivable and crediting Service Revenue. 1,280 Starting January 1, BB agreed to pay $1,920 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 $420 on hand on September 30. 10,000 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. 3,620 BB purchased and received $3,620 of supplies used for creating advertising displays. The supplier is to be paid in October. Supplies Equipment Accumulated Depreciation Accounts Payable ME Ch4 Exercises with Hint Videos Saved Help Save c 8 Accounts Payable 3,620 Deferred Revenue 1,410 Part 4 of 6 Salaries and Wages Payable Income Tax Payable 410 0.45 points Common Stock Retained Earnings 1,910 7,220 eBook Service Revenue 64,190 is carried forward from prior years. BB purchased and received $3,620 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 $410 tax owed from the last fiscal year. BB has issued 3,820 shares for $1,910 cash. BB started business a few years ago, so this is the total accumulated earnings up to October 1 of last year. BB has provided $3,810 of services for which it hasn't yet billed customers or recorded in its accounting records. BB employees earn $5,200 per month. The employees were paid in full on August 31, and were paid again on September 15. About $2,500 of the usefulness of the equipment's $10,000 cost has been used up during the current fiscal year. BB incurs a small cost rent the land on which its billboards are located. Rent for the current year has been paid in full. BB accountant expensed $5,920 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. Hint Salaries and Wages Expense Print 47,200 References Depreciation Expense Rent Expense 640 Supplies Expense 5,920 Income Tax Expense Totals $ 78,760 $ 78,760 Required: Prepare an income statement for the year ended September 30. Mc Mc Se . Ch4 Exercises with Hint Videos G Saved Help 8 Required: Prepare an income statement for the year ended September 30. Part 4 of 6 BILL'S BOARDS Income Statement 0.45 points eBook Hint Print References