BILL'S BOARDS Unadjusted Trial Balance At September 30 Credits Account Name Debits Notes $ 10,500 This balance equals the balance reported by the bank. A customer ordered $820 of advertising services to be provided in October. The accountant recorded this service by debiting Accounts Receivable and crediting Service Cash Accounts Receivable 820 Revenue. Prepaid Rent Starting January 1, BB agreed to pay $1,080 cash to rent the land on which its billboards 720 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. 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 $2,210 of supplies used for creating advertising displays. The supplier is to be paid in October. This balance relates to $1,590 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 $310 tax owed from the last fiscal year. BB has issued 2,820 shares for $1,410 cash. BB started business a few years ago, so this is the total accumulated earnings up to October 1 of last year. Supplies Equipment 6,400 Accumulated Depreciation Accounts Payable 2,210 Deferred Revenue 1,590 Salaries and Wages Payable Income Tax Payable 310 Common Stock 1,410 5,320 Retained Earnings BB has provided $2,810 of services for which it hasn't yet billed customers or recorded in its accounting records. BB employees earn $4,700 per month. The employees were paid in full on August 31, and were paid again on September 15. About $1,600 of the usefulness of the equipment's $6,400 cost has been used up during the current fiscal year. BB incurs a small cost to rent the land on Service Revenue 57,770 Salaries and Wages Expense 46,700 Depreciation Expense Rent Expense 360 which its billboards are located. Rent for the current year has been paid in full. BB accountant expensed $3,110 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. Supplies Expense 3,110 Income Tax Expense Totals $ 68,610 $ 68,610

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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BILL'S BOARDS
Balance Sheet
$
$
$
Transcribed Image Text:BILL'S BOARDS Balance Sheet $ $ $
BILL'S BOARDS
Unadjusted Trial Balance
At September 30
Credits
Account Name
Debits
Notes
Cash
$ 10,500
This balance equals the balance reported by
the bank.
A customer ordered $820 of advertising
services to be provided in October. The
accountant recorded this service by debiting
Accounts Receivable and crediting Service
Accounts Receivable
820
Revenue.
Starting January 1, BB agreed to pay $1,080
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.
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 $2,210 of supplies
used for creating advertising displays. The
supplier is to be paid in October.
This balance relates to $1,590 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 $310 tax owed from the
last fiscal year.
BB has issued 2,820 shares for $1,410 cash.
BB started business a few years ago, so this
is the total accumulated earnings up to
October 1 of last year.
Prepaid Rent
720
Supplies
Equipment
6,400
Accumulated Depreciation
$ 0
Accounts Payable
2,210
Deferred Revenue
1,590
Salaries and Wages Payable
Income Tax Payable
310
Common Stock
Retained Earnings
1,410
5,320
BB has provided $2,810 of services for which
it hasn't yet billed customers or recorded in
its accounting records.
BB employees earn $4,700 per month. The
employees were paid in full on August 31, and
were paid again on September 15.
About $1,600 of the usefulness of the
equipment's $6,400 cost has been used up
during the current fiscal year.
BB incurs a small cost to rent the land on
Service Revenue
57,770
Salaries and Wages Expense
46,700
Depreciation Expense
Rent Expense
360
which its billboards are located. Rent for
the current year has been paid in full.
BB accountant expensed $3,110 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.
Supplies Expense
3,110
Income Tax Expense
Totals
$ 68,610
$ 68,610
Transcribed Image Text:BILL'S BOARDS Unadjusted Trial Balance At September 30 Credits Account Name Debits Notes Cash $ 10,500 This balance equals the balance reported by the bank. A customer ordered $820 of advertising services to be provided in October. The accountant recorded this service by debiting Accounts Receivable and crediting Service Accounts Receivable 820 Revenue. Starting January 1, BB agreed to pay $1,080 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. 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 $2,210 of supplies used for creating advertising displays. The supplier is to be paid in October. This balance relates to $1,590 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 $310 tax owed from the last fiscal year. BB has issued 2,820 shares for $1,410 cash. BB started business a few years ago, so this is the total accumulated earnings up to October 1 of last year. Prepaid Rent 720 Supplies Equipment 6,400 Accumulated Depreciation $ 0 Accounts Payable 2,210 Deferred Revenue 1,590 Salaries and Wages Payable Income Tax Payable 310 Common Stock Retained Earnings 1,410 5,320 BB has provided $2,810 of services for which it hasn't yet billed customers or recorded in its accounting records. BB employees earn $4,700 per month. The employees were paid in full on August 31, and were paid again on September 15. About $1,600 of the usefulness of the equipment's $6,400 cost has been used up during the current fiscal year. BB incurs a small cost to rent the land on Service Revenue 57,770 Salaries and Wages Expense 46,700 Depreciation Expense Rent Expense 360 which its billboards are located. Rent for the current year has been paid in full. BB accountant expensed $3,110 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. Supplies Expense 3,110 Income Tax Expense Totals $ 68,610 $ 68,610
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