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 neighbornood. To get the business started. Humphrey used $6\mathrm{.}200$ from his savings account to open a checking account for his new business, Elegant Lawn Care. He purchased two used power mowers and varlous 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 veekly basis. He sent these customers monthiy bills. By the end of the summet, they had pald him$5,000$ in cash and oved him another $2\mathrm{.}500.$ Humphrey also cut grass on an as$-$needed basis for other neighbors, who paid him$4,200.$ During the summer, Humphrey spent $900$ for gasoline for the truck and mowers. He pald$4\mathrm{.}100$ to a friend who helped him on several occasions. An aovertsement in the local paper cost $900.$ Now, at the end of the summer. Humphrey is concerned because he has only$3,900$left in his checking account. He says, "I worked hard all summer and have only $3\mathrm{.}900$ 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 Lavin Care. Complete this question by entering your answers in the tabs below. $[[$Income$,$Semt of$],[$Statement$,$Biners Eety$]]$ Balance Sheet Prepare an income statement $($for the three month period ended August $31,20$X$1)$ for Elegant Lawn Care. $[[$ELEGANT LAWN CARE$],[$Income Statement$],[$Three Months Ended August $31,20$X$1],[$Revenue$],[,,$s $,5\mathrm{.}000],[7,,,2\mathrm{.}500],[$Expenses$],[$E $,\backslash$infty $,,],[,4,100,,],[,\backslash$infty $,,],[,5\mathrm{.}800,,],[,5\mathrm{.}800,,],[$Total expenses,,,$17\mathrm{.}600],[,5,(10,100)$

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 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 $$8,000$ in cash and owed him another $$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. ${?}^n.$

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.