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 o. Littlechild invested $170,000 cash and office equipment valued at $22,000 in the business b. Purchased a small building for $620,000 to be used as an office. Paid $110.000 in cash and signed a note payable promising to pay the balance over several years. c. Purchased $3,200 of office supplies for cash. d. Purchased $74,000 of office equipment on credit e. Littlechild made reservations at a hotel hosting a kitchen and bath design conterence in August 2020. He will send a $1.200 deposit on July 1, 2020, f. Completed a project on credit and billed the client $5,400 for the work g. Paid a local online newspaper $3.700 for an announcement that the office had opened h. Completed a project for a client and collected $4,200 cash 1. Made a $4,200 payment on the equipment purchased in (a) J. Received $2,600 from the client described in (1) k. Paid $7400 cash for the office secretary's wages. 1. Littlechild withdrew $3,800 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, ora 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.) Lab Cash Accounts Rocelvable Office Supplies OH Equipment Budding Accounts Payable Linh {a) (b) (c) (d) (o) 0 (0) th) K) 0 Bal 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 ces 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 $ 0 Total liabilities and equity $ Analysis Component: Littlechild Enterprises' assets are financed 76% by debt. What does this mean? As part of your answer, include an explanation of how the 76% was calculated. (Round your answer to the nearest whole number) Assets result from a combination of debt and equity financing ( AL+E) Cittlechild Enterprises total assets of resulted from incurring in abilities x 100 = 76%
