At the beginning of the summer, Brent Davis was looking for a way to earn money to
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Several of his neighbors hired him to cut their grass on a weekly basis. He sent these customers monthly bills. By the end of the summer, they had paid him $2,400 in cash and owed him another $1,200. Brent also cut grass on an as-needed basis for other neighbors who paid him $2,000.
During the summer, Brent spent $400 for gasoline for the truck and mowers. He paid $2,000 to a friend who helped him on several occasions. An advertisement in the local paper cost $400. Now, at the end of the summer, Brent is concerned because he has only $1,800 left in his checking account. He says, "I worked hard all summer and have only $1,800 to show for it. It would have been better to leave the money in the bank."
Prepare an income statement, a statement of owner's equity, and a balance sheet for Emerald Lawn Care. Explain to Brent whether or not he is "better off" than he was at the beginning of the summer.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For
College Accounting A Contemporary Approach
ISBN: 978-0077639730
4th edition
Authors: David Haddock, John Price, Michael Farina
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