On September $1,2022,$ Robert $($Bob$)$ Faria organized a business called Bobs Equipment Rental Inc. $($BERI$)$ for the purpose of operating an equipment rental yard. The new business was able to begin operations immediately by purchasing the assets and taking over the location of Rent$-$It$,$ an equipment rental company that was going out of business.BERI uses the following chart of accounts:Assets: Cash, Accounts Receivable, Prepaid Rent, Office Supplies, Rental Equipment, Accumulated depreciation: Rental EquipmentLiabilities: Notes Payable, Accounts Payable, Interest Payable, Salaries Payable, Unearned Rental FeesShareholders Equity: Common Shares, Retained Earnings, DividendsRevenues: Rental Fees EarnedExpenses: Salaries Expense, Maintenance Expense, Utilities Expense, Rent Expense, Office Supplies Expense, Depreciation Expense, Interest ExpenseIn September, the company entered the following transactions:Sept. $1$ Issued common shares to Robert Faria and other investors in exchange for $$200,000$ cash.Sept $1$ Paid $$9,000$ to Wellington Realty as three months advance rent on the rental yard and office formerly occupied by Rent$-$ItSept $1$ Purchased for $$180,000$ all the equipment formerly owned by Rent$-$It$.$ Paid $$70,000$ cash and issued a one$-$year note payable for $$110,000,$ plus interest at the annual rate of $9\%.$ This rental equipment is estimated to have a $10-$year useful life and zero residual value. It is depreciated using the straight$-$line method.Sept $4$ Purchased office supplies on account from Modern Office Co$.,$ $$1,630.$ Payment due in $30$ days. $($These supplies are expected to last for several months.$)$Sept $8$ Received $$10,000$ cash from McFadden Construction Co$.$ as advance payment for equipment rental.Sept $12$ Paid salaries for the first two weeks in September, $$3,600.$Sept $15$ Excluding the McFadden advance, equipment rental fees earned during the first $15$ days of September amounted to $$6,100,$ of which $$5,300$ was received in cash and $$800$ was an account receivable.Sept $17$ Purchased on account from Earth Movers, Inc., $$340$ in parts needed to repair a rental tractor. Payment is due in $10$ days.Sept $23$ Collected $$210$ of the accounts receivable recorded on September $15.$Sept $26$ Rented a backhoe to Mission Landscaping at a price of $$100$ per day, to be paid when the backhoe is returned. Mission Landscaping expects to keep the backhoe for about two or three weeks.Sept $26$ Paid biweekly salaries, $$3,600.$Sept $27$ Paid the account payable to Earth Movers, Inc., $$340.$Sept $28$ Paid dividends of $$2,000$ cash.Sept $30$ Received a bill for utilities expense for the month of September, $$270.$ Payment is due in $30$ days.Sept $30$ Cash received from equipment rental during the second half of September, $$6,450.$The information available on September $30$ is as follows: the office supplies on hand are estimated at $$1,100$; $$4,840$ of the advance payment from McFadden Construction Co$.$ has been earned; salaries earned by employees since the last payroll are $$900.$Instructions:a$.$ Prepare journal entries for the above transactions in September and post the transactions to the ledger, using T$-$accounts and adding any new accounts which you need. You mayomit narratives to the journal entries.b$.$ Prepare adjusting journal entries and post the adjustments to the T$-$accounts, adding any new accounts which you need. Note that some of the adjusting entries can be derived from the information provided in the various transactions from September $1$ toSeptember $30,$ in addition to the information available on September $30.$c$.$ Prepare a statement of earnings $($income statement$)$ for the month of September in good Form.d$.$ Prepare a statement of retained earnings for the month of September in good form.e$.$ Prepare a classified statement of financial position $($balance sheet$)$ as of September $30$ in good form.f$.$ Prepare closing entries as of September $30.$g$.$ Compute BERIs working capital and current ratio at September $30,2022$ and comment on BERIs liquidity as at September $30,2022.$

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