I am working on Financial Condition. et.htm Sorty McCreaery Lauren Alina MLab &

Question

I am working on Financial Condition.

et.htm Sorty McCreaery Lauren Alina MLab & Masterin.. Crous Creus Ren.. work Assignment St. Edward Cathol.Saint Anne Catholic D at Jimes the A Help Save & Enl Chec Critical Thinking Problem 3.1 Financial Condition ning of the summer, Brent Davis was looking for a way to earn money to pay for his college tuition in the fall. He decided a lawn service business in his neighborhood. To get the business started, Brent used $3,000 from his savings account to open e purchased two used power mowers and various lawn care tools for 00unt for hls new business, Emerald Lawn Care. He purchased two used power mowers and varlous lawn care foo $1,000, and paid $1,800 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 summer, they had paid him $2,400 in cash and owed him another $1,200. 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 pald $2,000 to a friend who helped him on several $400. Now, at the end of the summer, Brent is concerned because he has only occasions. An advertisement in the local paper cost to leave the money in the bank" Required: Prepare an income statement, o statement of owner's equity, and a balance sheet for Emeraid Lawn Care. 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 Complete this question by entering your answers in the tabs below. Income Stmt of Statement owners Eaty Balance Sheet Prepare an income statement for Emerald Lawn Care K Prev 7 of 7

Explanation / Answer

REVENUE RECEIVED OR RECEIVABLE

( 2400 $ + 1200 $ + 2000 $)

CONCLUSION -

Brent should not be Concerned as he had made profit of 2800 $ in the business and his Equity has been increased to 5800 $ from 3000 $.

Even if his Account Balance is Left only 1800 $, he have to consider the other Assets also like Amount to be received 1200 $ from his customers and Fix Assets left with him at the End worth 2800$.

INCOME STATEMENT

REVENUE RECEIVED OR RECEIVABLE

( 2400 $ + 1200 $ + 2000 $)

5600 $ LESS - GASOLINE FOR THE TRUCK 0400 $ LESS - PAID TO FREIND FOR HELP 2000 $ LESS - ADVERTIZEMENT COST 0400 $ NET INCOME 2800 $

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