At the beginning of the summer, Humphrey Nelson was looking for a way to earn money to
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Question:
At the beginning of the summer, Humphrey Nelson was looking for a way to earn money to pay for his college tuition in the fall. He decided to start a lawn service business in his neighborhood. To get the business started, Humphrey used $ from his savings account to open a checking account for his new business, Elegant Lawn Care. He purchased two used power mowers and various lawn care tools for $ and paid $ for a used truck to transport the mowers.
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 $ in cash and owed him another $ Humphrey also cut grass on an asneeded basis for other neighbors, who paid him $
During the summer, Humphrey spent $ for gasoline for the truck and mowers. He paid $ to a friend who helped him on several occasions. An advertisement in the local paper cost $ Now, at the end of the summer, Humphrey is concerned because he has only $ left in his checking account. He says, I worked hard all summer and have only $ to show for it It would have been better to leave the money in the bank.
Required:
Prepare an income statement, a statement of owners equity for the three month period ended August X and a balance sheet dated August X for Elegant Lawn Care.
Related Book For
College Accounting A Contemporary Approach
ISBN: 9781260780352
5th Edition
Authors: David Haddock, John Price, Michael Farina
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