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 $185.000 cash and office equipment valued at $25,000 in the business, b. Purchased a small building for $650,000 to be used as an office Paid $125,000 in cash and signed a note payable promising to pay the balance over several years. c. Purchased $3,500 of office supplies for cash. d. Purchased $77,000 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 $1,500 deposit on July 1, 2020 f. Completed a project on credit and billed the client $5.700 for the work 9. Paid a local online newspaper $4,000 for an announcement that the office had opened, h. Completed a project for a client and collected $4,500 cash. 1. Made a $4,500 payment on the equipment purchased in (a) J. Received $2,750 from the client described in (1) k. Pald $8,000 cash for the office secretary's wages 1. Littlechild withdrew $4,100 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 volues. 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 Labdities Cash Accounts Recevable Office Supplies Office Equipment Accounts Payable Building Equity Little child Capital Notes Payable EX Equil (a (b) (c) (d) e) (6 (9 th) + Bal Assets Accounts Receivable Office Supplies Office Equipment Lisbilities Account Notes Payable Payable Equity Little child Capital Bolding Explanation of Equity Transaction v 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 ht 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 TE 3-c. Prepare a balance sheet. Littlechild Enterprises Balance Sheet Assets Cash Accounts receivable Office supplies Office equipment Building Total assets March 31, 2020 Liabilities Accounts payable Notes payable Total liabilities Equity George Littlechild, capital Total liabilities and equity Analysis Component: Littlechild Enterprises' assets are financed 75% by debt. What does this mean? As part of your answer, include an explanation of how the 75% was calculated. (Round your answer to the nearest whole number.) Assets result from a combination of debt and equity financing (A=L+E). Littlechild Enterprises total assets of resulted from incurring in labilities x 100- 75 %