v Company A Company B Company C Company D Company E December 31, 2022 Assets $ 126,000 $ 141,000 $ 94,000 $ 178,000 $ 282,000 Liabilities 56,000 63,000 46,000 112,000 December 31, 2023 Assets 132,000 118,000 286,000 261,000 Liabilities 73,000 56,000 146,000 168,000 During 2023 Owner investments 46,000 55,000 33,500 George Littlechild started a new kitchen and bath design business called Littlechild Enterprises The following activities occurred during its first month of operations, March 2023 Littlechild invested $260,000 cash and office equipment valued at $40,000 in the business Purchased a small building for $800,000 to be used as an office Paid $200,000 in cash and signed a note payable promising to pay the balance over several years Purchased $5,000 of office supplies for cash Purchased $92,000 of office equipment on credit Littlechild made reservations at a hotel hosting a kitchen and bath design conference in August 2023 He will send a $3,000 deposit on July 1, 2023 Completed a project on credit and billed the client $7,200 for the work Paid a local online newspaper $5,500 for an announcement that the office had opened Completed a project for a client and collected $6,000 cash Made a $6,000 payment on the equipment purchased in (d) Received $3,500 from the client described in (f) Paid $11,000 cash for the office secretary's wages Littlechild withdrew $5,600 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 does not require a journal entry, select No Affect on Equity in the 'Explanation of equity transaction' field ) 3 a Prepare an income statement 3 b Prepare a statement of changes in equity 3 c Prepare a balance sheet Analysis Component Littlechild Enterprises' assets are financed 70 by debt What does this mean As part of your answer, include an explanation of how the 70 was calculated (Round your answer to the nearest whole number )

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v Company A Company B Company C Company D Company E December 31, 2022: Assets $ 126,000 $ 141,000 $ 94,000 $ 178,000 $ 282,000

v Company A Company B Company C Company D Company E December 31, 2022: Assets $ 126,000 $ 141,000 $ 94,000 $ 178,000 $ 282,000 Liabilities 56,000 63,000 46,000 112,000 ? December 31, 2023: Assets 132,000 118,000 ? 286,000 261,000 Liabilities ? 73,000 56,000 146,000 168,000 During 2023: Owner investments 46,000 55,000 33,500 ?George Littlechild started a new kitchen and bath design business called Littlechild Enterprises. The following activities occurred during its first month of operations, March 2023:

Littlechild invested $260,000 cash and office equipment valued at $40,000 in the business.
Purchased a small building for $800,000 to be used as an office. Paid $200,000 in cash and signed a note payable promising to pay the balance over several years.
Purchased $5,000 of office supplies for cash.
Purchased $92,000 of office equipment on credit.
Littlechild made reservations at a hotel hosting a kitchen and bath design conference in August 2023. He will send a $3,000 deposit on July 1, 2023.
Completed a project on credit and billed the client $7,200 for the work.
Paid a local online newspaper $5,500 for an announcement that the office had opened.
Completed a project for a client and collected $6,000 cash.
Made a $6,000 payment on the equipment purchased in (d).
Received $3,500 from the client described in (f).
Paid $11,000 cash for the office secretary's wages.
Littlechild withdrew $5,600 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 does not require a journal entry, select "No Affect on Equity" in the 'Explanation of equity transaction' field.)

3-a. Prepare an income statement.

3-b. Prepare a statement of changes in equity.

3-c. Prepare a balance sheet.

Analysis Component: Littlechild Enterprises' assets are financed 70% by debt. What does this mean? As part of your answer, include an explanation of how the 70% was calculated. (Round your answer to the nearest whole number.)