George Littlechild started a new kitchen and bath design business called Littlechild Enterprises. The following activities occurred during its first month of operations, March 2020 a. Littlechild invested $200,000 cash and office equipment valued at $28.000 in the business. b. Purchased a small building for $680,000 to be used as an office Paid $140.000 in cash and signed a note payable promising to pay the balance over several years, c. Purchased $3,800 of office supplies for cash d. Purchased $80,000 of office equipment on credit e. Littlechild made reservations at a hotel hosting a kitchen and bath design conference in August 2020. He will send a $1800 deposit on July 1, 2020 f. Completed a project on credit and billed the client $6,000 for the work g. Paid a local online newspaper $4 300 for an announcement that the office had opened h. Completed a project for a client and collected $4,800 cash I. Made a $4.800 payment on the equipment purchased in (d) J. Received $2.900 from the client described in k. Paid $8,600 cash for the office secretary's wages 1. Littlechild withdrew $4.400 cash from the company bank account to pay personal living expenses Required: 1. & 2. Complete the following table Use udations and subtractions to show the transactions effects on the elements of the equation For each change in equity, select whether the change was caused by an investment a revenue an expense or wthdrawal Determine the final total for each item and venly that the us in balance (Enter all amounts as positive values the transaction/event does not affect equity or do not required journal entry, Belect "No Affect on Equity in the Expladation of equity transaction' field.) Equ Llabilities 3-a. Prepare an income statement. Littlechild Enterprises Income Statement For Month Ended March 31, 2020 Revenues: Service revenue Operating expenses Wages expense Advertising expense Total operating expenses 0 3-b. Prepare a statement of changes in equity. Littlechild Enterprises Statement of Changes in Equity For Month Ended March 31, 2020 George Littlechild, capital, March 1 Add: Investments by owner Total Less: Withdrawals by owner Loss George Littlechild, capital, March 31 $ $ 0 Assets Cash Accounts receivable Office supplies Office equipment Building Total assets Littlechild Enterprises Balance Sheet March 31, 2020 Liabilities Accounts payable Notes payable Total liabilities Equity George Littlechild, capital $ 0 Total liabilities and equity 0 $ 0 Analysis Component: Littlechild Enterprises' assets are financed 74% by debt What does this mean? As part of your answer include an explanation of how the 74% was calculated. (Round your answer to the nearest whole number.) Assets result from a combination of debt and equity financing (A=L+E) Little child Enterprises total assets of resulted from incutting in liabilities x 100 74% Care M 11 ME INI
