On January 1, 2019, Dance Training Co entered its second year of operations. Dance Training Co provides elite personal training courses to dancers who want to work on cruise ships. On December 31, 2020, Jordan Ryan, the owner, finalized the company’s records, which showed the following items.

The ending capital balance for one period is the beginning capital balance for the next period. There were no owner investments during the year ended December 31, 2020.

Required

Prepare an income statement and statement of changes in equity for the year ended December 31, 2020, and balance sheet at December 31, 2020, similar to Exhibits 1.8, 1.9, and 1.10.

Analysis Component: Analyze the balance sheet and calculate what percentage of the assets at December 31, 2020, were financed by (a) debt and (b) equity.

Exhibits 1.8, 1.9, and 1.10.

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Jordan Ryan, withdrawals Notes payable. Prepaid rent. Rent expense. Accounts payable. Accounts receivable. $ 10,200 $50,000 28,000 4,800 18,000 3,200 16,700 10,600 50,000 26,400 24,100 20,000 143,000 14,000 2,900 Cash. Choreography revenue. Dance studio equipment. Supplies. Dance training revenue. Supplies expense.. Furniture. Utilities expense Interest expense. Wages expense. 68,800 Jordan Ryan, capital, December 31, 2019*. 80,100