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 $6,000 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 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. By the end of the summer, they had paid him $4,800 in cash and owed him another $2,400. Humphrey also cut grass on an as-needed basis for other neighbors, who paid him $4,000. During the summer, Humphrey spent $800 for gasoline for the truck and mowers. He paid $4,000 to a friend who helped him on several occasions. An advertisement in the local paper cost $800. Now, at the end of the summer, Humphrey is concerned because he has only $3,600 left in his checking account. He says, “I worked hard all summer and have only $3,600 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, 20X1), and a balance sheet (dated August 31, 20X1) for Elegant Lawn Care.