Critical Thinking Problem $3\mathrm{.}1($Algo$)$ Financial Condition LO $3-1,3-4,3-6$

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 $$9,200$ from his savings account to open a checking account for his new business, Elegant Lawn Care. He purchased two used power mowers and various lawn care tools for $$2,000,$ and paid $$3,600$ for a used truck to transport the mowers.

Several of his heighbors 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 $$8,000$ in cash and owed him another $$4,000.$ Humphrey also cut grass on an as$-$needed basis for other neighbors, who paid him $$7,200.$

During the summer. Humphrey spent $$2,400$ for gasoline for the truck and mowers. He paid $$5,600$ to a friend who helped him on several occasions. An advertisement in the local paper cost $$2,400.$ Now, at the end of the summer, Humphrey is concerned because he has only $$8,400$ left in his checking account. He says, "I worked hard all summer and have only $$8,400$ to show for it$.$ It would have been better to leave the money in the bank.

Required:

Prepare an income statement, a statement of owner's equity $($for the three month period ended August $31,20$X$1),$ and a balance sheet $($dated August $31,20$X$1)$ for Elegant Lawn Care.

Complete this question by entering your answers in the tabs below.

$\backslash$table$[[$Income$,$Statement of$],[$Statement$,$Owners Equity$]]$ Balance Sheet

Prepare a balance sheet for Elegant Lawn Care, month of August $31,20$X$1.$

ELEGANT LAWN CARE

Balance Sheet