Nice-n-Fresh Drycleaning showed the following information for its first and second months just ended, March and April of 2014:

*Ed Fresh made a $10,000 investment during March and had withdrawals of $1,000 in March and $25,100 in April.
Required
Use the information provided to complete a statement of changes in equity and a balance sheet for each of March and April 2014.Prepare the statements on a comparative16 basis similar to the statements for Danler Leather and West Jet in Appendix II at the end of the textbook.
Analysis Component:
a. Liabilities increased by $25,200 from March 31, 2014, to April 30, 2014. Review the balance sheet and identify why liabilities increased.
b. Equity increased by $34,400 during March and by $23,400 during April, yet net income was much higher in April. Explain.

Transcribed Image Text:

April 30, March 31, Account Title Cash Cleaning supplies Prepaid rent Equipment.. Accounts payabl.. Notes payable. Ed Fresh, capital 2014 7,000 3,500 12,000 76,000 700 2014 3,000 900 16,000 30,000 500 40,000 15,000