Reference no: EM132693756

On August 31, 2019, the Spirit Equipment Repair Corp.'s post-closing trial balance was as follows.

Account Debit :Cash $9,820 AR 6,500 Supplies 4,200 Equipment 33,000 Total:53,520

Account Credit: Accumulated Depreciation - Equipment $3,820 AP 6,200 Salaries Payable 4,300 Unearned Revenue 2,600 Common Shares 21,250 Retained Earnings 15,350 Total $53,520

During September the following transactions were completed:

Sep 4 Paid employees $6,250 for salaries due, of which $4,300 was for August salaries payable and $1,950 for September.

Sep 6 Received $4,500 cash from customers in payment of accounts.

Sep 11 Received $9,200 cash for services performed in September.

Sep 12 Sold common shares for $12,500.

Sep 21 Paid creditors $4,500 of Accounts Payable due.

Sep 24 Paid September and October rent, $2,200 ($1,100 per month).

Sep 25 Paid salaries, $6,250.

Sep 26 Performed services on account, $1,400.

Sep 27 Received $1,500 from customers for services to provided in the future.

Sep 28 Paid a cash dividend, $550.

Sep 28 Paid income tax for the month, $260.

Required:

Problem 1. Prepare an equation analysis of the effects of the opening balances and the September transactions.