House of teaching, Inc. (HTI) is a company that runs a tutoring service for high school and university students. The company reported the following amounts in its post-closing trial balance, prepared at the end of its first fiscal year, at August 31.

Accounts Payable	$60
Accounts Receivable	$220
Accumulated Depreciation	$1,200
Cash	$700
Common Stock	$2,900
Equipment	$12,000
Interest Payable	$40
Note Payable (Long-Term)	$8,000
Retained Earnings	$820
Supplies	$100

The company encountered the following events during September:

a. HTI provided 100 hours of regular hourly tutoring at the rate of $20 per hour, all of which was collected in cash.

b. HTI paid teachers at the hourly rate of $10 per hour. On September 28, HTI paid for 90 hours of studying time and promised to pay the remaining hours worked.

c. HTI hosted an all-night review session on September 29 for people cramming for midterm exams, at a special price of $10 per attendee. Rather than collect cash at the time of the review session, HTI will send bills in October to the 75 people who attended the review session.

d. At the beginning of the night-long review session, HTI paid $200 cash to its teachers for wages. No additional salaries and wages will be paid for the review session.

e. HTI collected $200 cash on account from students who received studying tutoring during the summer.

f. HTI also collected $250 cash from a high school for a tutoring session to be held in October.

g. HTI determined that depreciation for September should be $100.

h. Although HTI adjusted its accounts on August 31, it has not yet paid the $40 monthly interest owed on the promissory note, for either August or September. The note is due in three years.

i. HTI has only $40 of supplies left at September 30.

j. HTI's income taxes are approximately 30% of income before tax.

Required:

1. Prepare HTI's journal entries and adjusting journal entries.

2. Prepare HTI's income statement and statement of retained earnings for the month ended September 30.

3. Prepare HTI's classified balance sheet at September 30.