Examine Exhibit 1-9 on page 22. The exhibit summarizes the transactions of Hunter Environmental Consulting for the month of April 2013. Suppose the business completed transactions 1 to 7 and needed a bank loan on April 21, 2013. The vice-president of the bank requires financial statements to support all loan requests.

In Exhibit 1-9

(1) The business recorded the $250,000 cash investment made by Lisa Hunter.

(2) Paid $100,000 cash for land.

(3) Bought $7,000 of office supplies on account.

(4) Received $30,000 cash from clients for service revenue earned.

(5) Performed services for clients on account, $25,000.

(6) Paid cash expenses: rent, $4,000; employee salaries, $6,500; utilities, $1,500.

(7) Paid $5,000 on the account payable created in Transaction 3.

(8) Remodelled Hunter's personal residence. This is not a transaction of the business.

(9) Collected $15,000 on the account receivable created in Transaction 5.

(10) Sold land for cash equal to its cost of $50,000.

(11) The business paid $6,000 cash to Hunter as a withdrawal.

Required

Prepare the income statement, statement of owner's equity, and balance sheet that Hunter Environmental Consulting would present to the banker on April 21, 2013, after completing the first seven transactions.