Problem $1-4$B Financial statements LO$6$

CHECK FIGURE: Wes Gandalf, Capital, Dec. $31,2020=$$$192,000$

On January $1,2020,$ Fireworks Fantasia entered its third year of operations. On December $31,2020,$ Wes Gandalf, the owner, finalized the company's records that showed the following items.

$*$Hint: The ending capital balance for one period is the beginning capital balance for the next period. The owner made investments of $$30,000$ during the year ended December $31,2020.$

Required Prepare an income statement and statement of changes in equity for the year ended December $31,2020,$ and a December $31,2020,$ balance sheet, similar to Exhibits $1\mathrm{.}8,1\mathrm{.}9,$ and $1\mathrm{.}10.$

Analysis Component: Analyze the balance sheet and calculate what percentage of the assets at December $31,2020,$ were financed by $($a$)$ debt and $($b$)$ equity.