House of Tutors, Incorporated, (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, 2013.

The company encountered the following events during September 2013:
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 tutors at the hourly rate of $10 per hour. On September 28, HTI paid for 90 hours of tutor 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 tutors for wages. No additional wages will be paid for the review session.
e. HTI collected $200 cash on account from students who received tutoring during summer 2013.
f. HTI also collected $250 cash from a high school for a tutoring session to be held in October 2013.
g. HTI determined that depreciation for September should be $100.
h. On September 30, HTI declared and paid a $500 cash dividend.
i. 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 October 2016.
j. HTI has only $40 of supplies left at September 30.
k. 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, 2013.
3. Prepare HTI's classified balance sheet at September 30, 2013.

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Accounts Payable Accounts Receivable $ 60 220 1,2100 700 2,900 Equipment nterest Payable Note Payable (long-term) Retained Earnings Supplies $12,000 40 8,000 Cash Contributed Capital 100