The owner of the company has asked for your help in preparing the next set of financial accounts to 30 September 2018.

You eagerly begin to assist with the preparation of the next set of financial accounts to 30 September 2018. Firstly, you locate the account balances related to 31 August 2018:- Cash at bank $267,000; Furniture and fittings $24,000; Equipment $60,000; Capital $351,900; Accounts receivable A. Dragon - $6,900; Accounts payable - S. Ramsumir- $6,000.

Secondly, you identify the transactions that occurred during September 2018.

1. On Sept 1 2018, The owner withdrew $6,000 from the business bank account for personal reasons.

2. On Sept 1 2018, The Water Company paid $6,000 towards the amount owed to S. Ramsumir.

3. On Sept 1 2018, The Water Company paid business insurance for the next 12 months - $72,000.

4. On Sept 5 2018, The owner purchased a new desk for his office. The desk cost $6,000.

5. On Sept 10 2018, The Water Company purchased supplies for the business - $27,000.

6. On Sept 15 2018,The Water Company paid (late) the rent on the building for the month of September 2018 - $9,000.

7. On Sept 15 2018, The Water Company hired a new accountant.

8. On Sept 20 2018, received $5,400 from A. Dragon.

The Owner of the company also makes you aware of other facts which need to be reflected in the September 2018 accounting reports. He has provided you with documentary evidence of these facts.

I. Monthly depreciation to be provided as follows Furniture and Fittings $600, New desk $150 and Equipment $3,000.

II. Salary of $3,000 is owed to the old accountant.

III. A stock count revealed that $21,000 worth of supplies is on hand.

IV. During September, billed clients for services performed - $60,000. However by the end of September, only $45,000 worth of invoices had not been paid.

Based on all the information received, please prepare in proper format, the financial statements for The Water Company Limited for September 2018. .

a. The Income Statement.

b. The Statement of owners equity.

c. The Balance sheet.

It is recommended that students show all workings.