George little , Capital ,March
8. Paid a local online newspaper $3,500 for an announcement that the office had opened. Required 1. Cre Re Caleate the amount of we by Cam Com December 4 Caleate them for investment in Copy made during 2020. Calculate the amount of bowed by company on December 31, 2019 Problem INA Analyzing transactions and preparing financial statements LOG, 7, 8 e cel George Littlechild started a new kitchen and bath design business called Littlechild Enterprises. The following CHECK FIGURES: 2. George Linechild, Capital March 31, 2020-$175 100. 3. LOSS $1,300. Total assets activities occurred during its first month of operations, March 2020: b. Purchased a small building for $600,000 to be used as an office. Paid $100.000 in cash and signed a note A. Lintlechild invested $160.000 cash and office equipment valued at $20,000 in the business. e. Littlechild made reservations at a hotel hosting a kitchen and bath design conference in August 2020. He f. Completed a project on credit and billed the client S5,200 for the work. $743300 will send a $1,000 deposit on July 1, 2020 1 payable promising to pay the balance over several years. c. Purchased $3,000 of office supplies for cash. d. Purchased $72,000 of office equipment on credit. 2 h. Completed a project for a client and collected $4,000 cash. 1. Made a $4,000 payment on the equipment purchased in (d). 64 Red from the client described in an 57.000 cash for the office secretary's www 1. Lechild withdrew Socash from the company bank account to pay personal living expenses For Ended Mach 31, 2010 of Changes in Equity For Morth Ended March 31, 2020 George Leche capital, March 1 Investments by owner Less Wirawals by owner Loss George Linechild capital March 31 Littlechild Enterprises Balance Sheet March 31, 2020 Liabilities Accounts payable Notes payable Total abilities Assets Cash Accounts receivable Office supplies Office equipment Building Equity George Littlechild, capital Total liabilities and equity Total assets Required 1. Create a table like the one in Exhibit 1.15, using the following headings for the columns: Cash; Accounts Receivable; Office Supplies; Office Equipment; Building, Accounts Payable; Notes Payable, and George Littlechild, Capital. Leave space for an Explanation of Equity Transaction column to the right of the Capital column. Identify revenues and expenses by name in the Explanation of Equity Transaction column. 2. Use additions and subtractions to show the transactions' effects on the elements of the equation. Do not determine new totals for the items of the equation after each transaction. Next to each change in equity, state whether the change was caused by an investment, a revenue, an expense, or a withdrawal. Determine the final total for each item and verify that the eguation is in balance. Prepare an income statement, a statement of changes in equity, and a balance sheet using the formats provided 65
