Critical Thinking Problem 3.1 Financial Condition At the beginning of the summer, Brent Davis 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. Brent used $3.000 from his savings account to open a checking account for his new business, Emerald Lawn Care. He purchased two used power mowers and various lawn care tools for $1.000, and paid $1,800 for a second-hand truck to transport the mowers Several of his neighbors hired him to cut the grass on a weekly basis. He sent these customers monthly bills. By the end of the summer, they had paid him $2.400 in cash and owed him another $1200. Brent also cut grass on an as needed basis for other neighbors who paid him $2.000. During the summer, Brent spent $400 for gasoline for the truck and mowers. He paid $2,000 to a friend who helped him on several occasions. An advertisement in the local paper cost $400. Now, at the end of the summer Brent is concerned because he has only $1.800 left in his checking account. He says. "I worked hard all summer and have only $1.800 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, and a balance sheet for Emerald Lawn Care Exercise 4.2 Recording transactions in the general journal. LO 4-1 Selected activity of Mason Consulting Services follow. DATE TRANSACTIONS 2019 Sept. 1 Zack Mason invested $60,000 in cash to start the firm. 4 Purchased office equipment for $6,500 on credit from Den, Inc.; received Invoice 9823, payable in 30 days. 16 Purchased an automobile that will be used to visit clients; issued Check 1001 for $14,500 in full payment. 20 Purchased supplies for $520; paid immediately with Check 1802. 23 Returned damaged supplies for a cash refund of $170. 30 Issued Check 1003 for $4,200 to Den, Inc., as payment on account for Invoice 9823. 30 Withdrew $3,000 in cash for personal expenses. 30 Issued Check 1004 for $1,700 to pay the rent for September. 30 Performed services for $2,750 in cash. 30 Paid $435 for monthly telephone bill, Check 1005. Prepare journal entries for the transactions incurred during September of 2019