Harold's House of Hockey (HHH) has owned and operated a hockey arena near Edmonton for the past two years. HHH earns revenues by renting the rink out to hockey teams and skating clubs, and incurs typical costs needed to operate the rink. HHH's chart of accounts is reported below in alphabetical order along with the balances at the beginning of the current fiscal year (September 1) and a summary of the first month's transactions (1-6). Cumulative Account Balances Chart of Accounts Sept 1 (1) (2) (3) (4) (5) (6) Accounts payable $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 Accounts receivable 200 0 0 0 500 500 500 Accrued liabilities 200 200 200 200 200 200 1,900 Accumulated depreciation 2,000 2,000 2,000 2,000 2,000 2,200 2,200 Building and equipment 30,000 30,000 30,000 30,000 30,000 30,000 30,000 Cash 36,000 36,200 61,200 46,200 46,200 46,200 46,200 Contributed capital 32,000 32,000 32,000 32,000 32,000 32,000 32,000 Depreciation expense 0 0 0 0 0 200 200 Income tax expense 0 0 0 0 0 0 1,400 Interest expense 0 0 0 0 0 0 100 Long-term note payable 18,000 18,000 18,000 18,000 18,000 18,000 18,000 Rent revenue 0 0 20,000 20,000 20,500 21,500 21,500 Retained earnings 14,000 14,000 14,000 14,000 14,000 14,000 14,000 Supplies 1,000 1,000 1,000 1,000 1,000 700 700 Supplies expense 0 0 0 0 0 300 300 Deferred revenue 0 0 5,000 5,000 5,000 4,000 4,000 Utilities expense 0 0 0 1,000 1,000 1,000 1,000 Wages expense 0 0 0 14,000 14,000 14,000 14,200

Required: A. Analyze the changes in this schedule for each transaction; then explain the transaction. Transaction (1) is given below as an example: (1) Accounts Receivable decreased $200, and Cash increased by $200. Therefore, transaction (a) was the collection of $200 cash from a customer on account. B. Using the September 30 balances shown in column (6), prepare an income statement, statement of retained earnings, and balance sheet.