Critical Thinking Problem 3.1 (Static) 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 $6,000 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 second-hand 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 $4,800 in cash and owed him another $2,400. Humphrey also cut grass on an as-needed basis for other neighbors, who paid him $4,000. During the summer, Humphrey spent $800 for gasoline for the truck and mowers. He paid $4,000 to a friend who helped him on several occasions. An advertisement in the local paper cost $800. Now, at the end of the summer, Humphrey is concerned because he has only $3,600 left in his checking account. He says, "I worked hard all summer and have only $3,600 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, 20X1), and a balance sheet (dated August 31, 201) for Elegant Lawn Care. Complete this question by entering your answers in the tabs below. Prepare an income statement (for the three month period ended August 31, 20X1) for Elegant Lawn Care. ELEGANT LAWN CARE Income Statement Three Months Ended August 31, 20X1 Revenue Expenses Total expenses 0 $ 0 Prepare a statement of owner's equity (for the three month period ended August 31, 201) for Elegant Lawn Care. ELEGANT LAWN CARE Statement of Owner's Equity Three Months Ended August 31, 20X1 Humphrey Nelson, Capital, June 1, 20X1 Net income for June-August Humphrey Nelson, Capital, August 31, 20X1 0 Prepare a balance sheet for Elegant Lawn Care, month of August 31, 20X1. ELEGANT LAWN CARE Balance Sheet August 31, 20X1 Assets Liabilities Owner's Equity Total Assets 0 Total Liabilities & Owner's Equity 0