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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.

prior years.

BB purchased and received $$2,310$ 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 $$510$ tax owed from the last fiscal year.

BB has issued $4,810$ shares for $$2,410$ 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 $$4,820$ of services for which it hasn't yet billed customers or recorded in its accounting records. BB employees earn $$5,700$ per month. The employees were paid in full on August $31,$ and were paid again on September $15.$ About $$1,500$ of the usefulness of the equipment's $$6,000$ 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 accountant expensed $$4,410$ of supties 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.

Prepare an income statement for the year ended September $30.$

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Required:

Prepare a statement of retained earnings for the year ended September $30$

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