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Critical Thinking Problem 3 . 1 ( Algo ) Financial Condition LO 3 - 1 , 3 - 4 , 3 - 6 At the
Critical Thinking Problem Algo Financial Condition LO At the beginning of the summer, Humphrey Nelson was looking for a way to earn money to pay for his college tultion In the fall. He declded to start a lawn service business in his nelghborhood. 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 varlous lawn care tools for $ and pald $ for a used truck to transport the mowers. Several of his nelghbors hired him to cut thelr grass on a weekly basls. He sent these customers monthly bills. By the end of the summer, they had pald him $ In cash and owed hlm another $ Humphrey also cut grass on an asheeded basls for other nelghbors, who pald him $ During the summer, Humphrey spent $ for gasoline for the truck and mowers. He pald $ to a frlend 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 hls 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 owner's equity for the three month perlod ended August X and a balance sheet dated August X for Elegant Lawn Care. Complete this question by entering your answers in the tabs below.
Critical Thinking Problem Algo Financial Condition LO
At the beginning of the summer, Humphrey Nelson was looking for a way to earn money to pay for his college tultion In the fall. He
declded to start a lawn service business in his nelghborhood. 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 varlous
lawn care tools for $ and pald $ for a used truck to transport the mowers.
Several of his nelghbors hired him to cut thelr grass on a weekly basls. He sent these customers monthly bills. By the end of the
summer, they had pald him $ In cash and owed hlm another $ Humphrey also cut grass on an asheeded basls for other
nelghbors, who pald him $
During the summer, Humphrey spent $ for gasoline for the truck and mowers. He pald $ to a frlend 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 hls 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 owner's equity for the three month perlod ended August X and a balance sheet
dated August X for Elegant Lawn Care.
Complete this question by entering your answers in the tabs below.
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