In January 2017, Able Forest has started a new landscaping company called The Forest Lawn Company. Able invested $20,000 of his savings and formed a corporation and issued stock to himself. Able borrowed $15,000 from family members due to be repaid before the end of the year. He purchased equipment for $18,000, paying cash for the equipment. He incurred substantial advertising and start-up expenses of $4,600 which he paid for in cash. During the first six months of the year, the sales revenue was $34,000 and of that amount he has collected $19,000 in cash, the remainder is owed to him by his customers. He is not expecting any bad debts. Expenses for the six months including plant material and Ables salary came to $18,100, of which he owes the nursery who supplies him $4,200 and the remainder has been paid in cash. Depreciation expense for the six-month period is computed to be $500.

Prepare:

1. An Income Statement for the Six Months Ended June 30, 2017, using accrual accounting.
2. A Balance Sheet as of June 30, 2017, using accrual accounting.