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 $1.800 deposit on July 1, 2020. f. Completed a project on credit and billed the client $6,000 for the work g. Pald 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 additions 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 a withdrawal. Determine the final total for each item and verify that the equation is in balance (Enter all amounts as positive values. If the transaction/event does not affect equity or do not require a journal entry, select "No Affect on Equity" in the 'Explanation of equity transaction field.) Assets Llabilities Cash Accounts Receivable Office Supplies Building Office Equipment $ 28.000 Accounts Payable Notes Payable Equity Littlechild. EX Capital Equit 5228.000 investme $200,000 140,000 3,800 680.000 540,000 3.800 (a) (b) c) (d) (o) (0) (9) 30.000 80,000 6.000 No Affed 6.000 Service 4300 Advertis 4800 Service 0) 4300 4.800 4.800 2.900 3.600 4.400 4800 2.900 02 ) (0) Bal 2.600 Wages 4200 Wimda 5221 500 5.41 800 53.100 5 3.800 $100.000 $600.000 $75.2001 5540.000 $ 835700 51836700 ilities Equity Notes Payable Littlechild, Capital Explanation of Equity Transaction $228,000 Investment by owner 540,000 No Affect on Equity 6,000 Service revenue 4,300 Advertising expense 4,800 Service revenue 8,600 Wages expense 4,400 Withdrawal by owner - $540,000+ $221,500 $836.700 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 0 3-c. Prepare a balance sheet. 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 $ Total liabilities and equity $ 0 5 0 Analysis Component Littiechild Enterprises assets are financed 74% by debt. What does this mean? As part of your answer include an explanation of how the 7496 was calculated (Round your answer to the nearest whole number:) Asset result from a combination of debt and equity financing (ALE Lichild Enterprises totalasses of reshed from incurring in abilities 100 =
