The Sharp Edge Ltd., a ski tuning and repair shop, opened on November 1, 2017. Although the company did not keep any formal accounting records, it did maintain a record of cash receipts and payments. The following information is available at the end of the first ski season, April 30, 2018:

Additional information:
1. At the end of April, customers owe Sharp Edge $1,440 for services they have received and not yet paid for.
2. The repair equipment was purchased at the beginning of November and has an estimated useful life of eight years. Sharp Edge uses straight-line depreciation.
3. On November 1, the company began renting space at a cost of $1,300 per month on a one-year lease. As required by the lease contract, the company paid the first and last months' (November 2017 and October 2018) rent in advance, in addition to paying rent the first of each month for that particular month.
4. The insurance policy was purchased November 1 and is effective for one year.
5. At April 30, $4,240 is owed for unpaid salaries.
6. At April 30, it was determined that an additional $800 is owed for income tax.
Instructions
(a) Calculate the cash balance at April 30.
(b) Prepare an accrual-based
(1) Income statement,
(2) Statement of changes in equity, and
(3) Statement of financial position for the six months ended April 30.

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Cash Receipts Cash Payments Issue of common shares Ski and snowboard repair services Repair equipment Rent Insurance Advertising Utility bills Salaries Income tax $20,000 66,500 $47,040 9,100 2,760 920 1,900 14,200 5.000 $80,920 $86,500