—_L. Snider,a young CPA, started Snider Accounting Services on September |, 2000. During September, the following transactions of the company took place:

(a) On September |, Snider invested $7,000 to start the business.

(b) On September |, the company paid $3,000 for one year's rent of office space in advance.

(c) On September 2, office equipment was purchased at a cost of $5,000.A down payment of $1,000 was made, and a $4,000, one-year note was signed for the balance owed.

(d) On September 5, office supplies were purchased for $600 cash.

(e) On September 18, $1,000 was collected from clients for accounting services performed.

(f) On September 28, a $500 salary was paid to an accounting assistant.

(g) On September 29, Snider withdrew $800 for personal use.

(h) On September 30, the company billed clients $1,200 for accounting services performed during the second half of September.

(i) On September 30, the September utility bill of $100 was received; it will be paid in early October.

(j) On September 30, Snider recorded the following adjustments:

|. Rent expense of $250 2. Depreciation of $60 on office equipment 3. Interest expense of $40 on note payable 4. Office supplies used of $50 Required: (1) Using the accounting equation format shown in the chapter, record the preceding items.

(2) Prove the equality of the accounting equation at the end of September.

(3) Calculate the net income of the company for September.

(4) Prepare a balance sheet for the company on September 30, 2000.  lo7