Libra, Inc. has been in business since the beginning of 2018. Jim Nasium is the CEO and President of the company.

Libra, Inc. has been in business since the beginning of 2018. Jim Nasium is the CEO and President of the company. Libra has already recorded many transactions for the month of September and now wants to prepare its financial statements for the month. The following accounts and balances were drawn from its accounting records at September 30, 2018. You can assume the temporary accounts were properly closed at the end of August. 

Account 

Balance:

Accounts Payable 

9,800 

Accounts Receivable 

Advertising Expense 

12,400 

Cash 

11,500 

Common Stock (beginning and ending of month) 

50,000 

Dividends (paid out) 

20,000 

Insurance Expense 

Interest Revenue 

3,200 

Land 

102,000 

Notes Payable 

30,000 

Prepaid Insurance 

12,800 

Rent Expense 

36,000 

Retained Earnings (beginning of month) 

32,400 

Service Revenue 

104,400 

Supplies 

11,600 

Supplies Expense 

Unearned Service Revenue 

15,000 

Wages Expense 

38,500 

Wages Payable 

Use The following information to make necessary month-end adjusting entries for the company.

1) The company used $9,200 of the supplies purchased during the month.

2) One-half of the Prepaid Insurance was used during the month.

3) Employees of the company earned an additional $2,400 since the last pay day. (the next pay day is in October) 

4) The company provided services to its customers in the amount of $14,200 for which it has not yet been paid (this is in addition to the amounts previously received and recorded).

5) The company earned $5,000 of the previously unearned service revenue during the month. 

Required: Use the preceding information to make an income statement, a statement of changes in stockholders’ equity, and a balance sheet for the company for the month of September 2018. 

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