Question

Account Name Cash Accounts Receivable Prepaid Rent Supplies Equipment BILL'S BOARDS Unadjusted Trial Balance At September 30 Debits Credits Notes $12,680 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. 18,888 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. 1,410 This balance relates to $1,410 cash paid by a customer in August for advertising from September 1- November 30. BB's 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. 1,910 BB has issued 3.820 shares for $1.910 cash. 7.229 38 started business a few years ago, so this is the total accumulated earnings up to October 1 of last Accumulated Depreciation Accounts Payable Deferred Revenue Salaries and Wages Payable Income Tax Payable Common Stock Retained Earnings year. Service Revenue 64,660 Salaries and Wages Expense 47,200 Depreciation Expense BB has provided $3,810 of services for which it hasn't yet billed customers or recorded in its accounting records. BB's 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 $19,eee cost has been used up during the current fiscal year. 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. BB's 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's tax rate is 2ex of income before tax. Rent Expense 1, 110 Supplies Expense 5,920 Income Tax Expense Totals 579,228 $78,28 579,23

Please help with General Journal too!! Thank you

Answer 1

Bill Board's Adjusting Enteries Date Particulars Sep-30 Service Revenue a/c To Accounts Receivable (Entry reversed) Dr. Debit in $ Credit in $ 1120 1120 800 Sep-30 Rent Expense a/c Dr. To prepaid Rent (Rent Expensed) 1920 / 12 = 160 x 5 800 Dr. Sep-30 Supplies a/c To Supplies expense (Correction entry) 420 2500 Sep-30 Depreciation expense a/c Dr. To Accum. Depre - Equip. (To record depreciation) 2500 470 Sep-30 Deferred Revenue a/c Dr. To Service Revenue (Revenue recognized) 1410/3 470 Dr. 3810 Sep-30 Accounts Receivable a/c To Service Revenue (Revenue billed) 3810 2600 Sep-30 Salaries and Wages Expense a/c Dr. To Salaries and Wages Payable (Salary accrued) 5600/2 2600 Dr. 1622 Sep-30 Income Tax Expense a/c To Income Tax Payable (Income Tax accrued) 1622

Worksheet For the period ending Dec 31 Particulars Cash Accounts Receivable Prepaid Rent Supplies Equipment Accum. Depre - Equipment Accounts Payable Deferred Revenue 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 Unadjusted Adjustments Adjusted Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ 12600 12600 1120 3810 1120 3810 1280 800 480 420 420 10000 10000 2500 2500 3620 3620 1410 470 940 2600 2600 410 1622 2032 1910 1910 7220 7220 64660 1120 4280 67820 47200 2600 49800 2500 2500 1110 800 1910 5920 420 5500 1622 1622 79230 79230 13342 13342 88642 88642 67820 Statement of Income For the period ending Dec 31 Service Revenue Less: Salaries and Wages Expense Depreciation expense Rent Expense Supplies expense 49800 2500 1910 5500 59710 8110 -1622 6488 Income Tax Expense @ 20% Net Income Statement of Retained Earnings For the period ending Dec 31 Beginning Balance Net Income Ending Balance 7220 6488 13708

Amounts in $ Amounts in $ Balance sheet As at Dec 31 Assets Current Assets Cash Accounts Receivable Prepaid Rent Supplies Amounts in $ Amounts in $ Liabilities Current Liabilities 12600 Accounts Payable 3810 Deferred Revenue 480 Salaries and Wages Payable 420 17310 Income Tax Payable 3620 940 2600 2032 9192 Non Current Assets Equipment Accum. Depre - Equipment Total Assets 10000 -2500 Shareholders Equity Common Stock 7500 Retained Earnings 24810 Total Liabilities & Equity 1910 13708 15618 24810