Donna Adams started an interior design company called Interiors by Donna, Inc., on September 1, 2010. The following amounts summarize the financial position of her business on September 14, 2010, after the first two weeks of operations:

During the remainder of September, the following events occurred:

a. Adams received \($10,000\) as a gift and used it to buy stock in the business.

b. Paid off the beginning balance of Accounts Payable.

c. Performed services for a client and received cash of \($2,500.

d.\) Collected cash from a customer on account, \($850.

e.\) Purchased supplies on account, \($600.

f.\) Consulted on the interior design of a major office building and billed the client for services performed, \($5,000.
g.\) Sold an additional \($2,500\) of stock in the business.
h. Paid salaries of \($2,400.
i.\) Sold supplies at cost to another interior designer for \($110\) cash.
j. Paid dividends of \($1,500\) to Adams.
Requirements 1. Enter the remaining transactions for the month of September into the expanded accounting equation, calculating new balances after each transaction.
2. Prepare the income statement of Interiors by Donna, Inc., for the month ended September 30, 2010.
3. Prepare the statement of retained earnings of Interiors by Donna, Inc., for the month ended September 30, 2010.
4. Prepare the balance sheet of Interiors by Donna, Inc., at September 30, 2010.

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Assets Liabilities Common Stock Stockholders' Equity Retained Earnings Accounts Accounts Common Service Salaries Cash + Receivable + Supplies + Equipment = $1,540 + $3,680 + + $24,000 = Payable + Stock + Revenue $5,100 + $21,000 + - Expense - Dividends $5,100 - $1,980