On January 1, 2022, Dog Obedience Training Co entered its second year of operations. This year the business expanded to include doggy daycare because many customers requested the service. On December 31, 2023, the owner Tim Oram 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, 2023.

Required
Prepare an income statement and statement of changes in equity for the year ended December 31, 2023, and balance sheet at December 31, 2023, 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, 2023, were financed by (a) debt and (b) equity.

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Accounts payable Accounts receivable $ 11,400 62,000 Cash 7,600 Dog kennel equipment 21,200 Tim Oram, capital, December 31, 2022* 81,300 Tim Oram, withdrawals 56,000 Vehicle 15,200 Interest expense 4,100 Notes payable Prepaid rent Rent expense Doggy daycare revenue Obedience training revenue Supplies Supplies expense Utilities expense Wages expense 40,000 6,000 24,000 46,500 121,000 4,400 17,900 11,800 70,000