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OBJECTIVES 3, 4, 5 3-40 Journal, Ledger, and Trial Balance (Alternates are 3-37, 3-39, and 3-41 through 3-44.) Robert Kapela owned and managed a fran chise of Ithaca Espresso, Incorporated. The company's balance sheet accounts had the following balances on September 1, 20X0, the beginning of a fiscal year: Ithaca Espresso Balance Sheet Accounts, September 1, 20XO Cash Accounts receivable Merchandise inventory Prepaid rent Store equipment Accumulated depreciation, store equipment Accounts payable Paid-in capital Retained earnings $ 13,000 5,200 77,800 4,000 21,000 $ 6,150 40,000 30,000 44,850 $121,000 $121,000 Summarized transactions for September were as follows: a. Acquisitions of merchandise inventory on account, $41,000. b. Sales for cash, $74,250. c. Payments to creditors, $29,000. d. Sales on account, $3,000. e. Advertising in newspapers, paid in cash, $3,000. f. Cost of goods sold, $45,000. g. Collections on account, $6,000. h. Miscellaneous expenses paid in cash, $8,000. i. Wages paid in cash, $9,000. i. Entry for rent expense. (Rent was paid quarterly in advance, $6.000 per were due on February 1, May 1, August 1, and November 1) . $6,000 per quarter. Payments k. Depreciation of store equipment, $250. ASSIGNM Required 1. Enter the September 1 balances in T-accounts in a general ledger. 2. Prepare journal entries for each transaction. 3. Post the journal entries to the ledger. Key your postings by transaction letter. 4. Prepare an income statement for September and a balance sheet as of September 30, 20X0