80.2K

Verified Solution

Link Copied!

prepare an income statement for the year end September 30.

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 Willam and made notes shown in the right useo tor creacang adveresting usprays. Ihe supplier is to be paid in October. This balance relates to $1,380 cash paid by a customer in August for advertising from Septenber 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 2,810 shares for $1,420 cash. BB started business a few years ago, so this is the total accumulated earnings up to October 1 of last year. B8 has provided $2,820 of services for which it hasn't yet billed customers or recorded in its accounting reconds. B8 employees earn $4,500 per month. The employees were paid in fu11 on August 31 , and were paid again on September 15. About $2,100 of the usefulness of the equipment's $8,400 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 ful1. 88 accountant expensed $4,110 of supplies purchased during the year because he assumed the supplies would be completely used by year-end. As noted above, he was wrong. b6 tax rate is 20x of income before tax. Required: Prenare an income statement for the vear ended September 30

Answer & Explanation Solved by verified expert

See Answer