Reference no: EM132460110

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

Account                        Debit                Credit

Cash                            $8,860

AR                               $6,700

Supplies                        $3,500

Equipment                    $35,000

Accumulated

Dep. - Equipment                                     $3,500

AP                                                         6,250

Salaries Payable                                       4,000

Unearned Revenue                                     2,310

Common Shares                                        21,500

Retained Earnings                                      16,500

Total                       $54,060                     $54,060

During September the following transactions were completed:

Sep 4 Paid employees $6,250 for salaries due, of which $4,000 was for August salaries payable and $2,250 for September.

Sep 6 Received $4,300 cash from customers in payment of accounts.

Sep 11 Received $9,950 cash for services performed in September.

Sep 12 Sold common shares for $12,500.

Sep 21 Paid creditors $4,200 of Accounts Payable due.

Sep 24 Paid September and October rent, $2,400 ($1,200 per month).

Sep 25 Paid salaries, $6,250.

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

Sep 27 Received $1,700 from customers for services to provided in the future.

Sep 28 Paid a cash dividend, $500.

Sep 28 Paid income tax for the month, $240.

Required:

Problem 1. Prepare a trial balance at September 30.

Problem 2. Prepare an income statement for the month of September.

Problem 3. Prepare a statement of financial position at September 30.