Invested $160,000 cash and office equipment valued at $20,000 in the business. da small building for $600,000 to be used as an office. Paid $100,000 in cash and signe alance over several years. d $3,000 of office supplies for cash. d $72,000 of office equipment on credit. made reservations at a hotel hosting a kitchen and bath design conference in August 20 n July 1, 2020. da project on credit and billed the client $5,200 for the work. al online newspaper $3,500 for an announcement that the office had opened. da project for a clent and collected $4,000 cash. 4,000 payment on the equipment purchased in (d). $2,500 from the cllent described in (f). Do cash for the office secretary's wages. withdrew $3,600 cash from the company bank account to pay personal living expenses. te the following table. Use additions and subtractions to show the transactions' effects o ange in equity. select whether the change was caused by an investment, a revenue, an e: e final total for each Item and verify that the equation Is in balance. (Enter all amounts a event does not affect equlty or do not requlre a Journal entry, select "No Affect on Egu

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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George Littechiid started a new kitchen and batn design business called Littlechiid Enterprises. Tne following activities occurred
during Its first month of operations, March 2020:
a. Littlechild Invested $160,000 cash and office equipment valued at $20,000 In the business.
b. Purchased a small bullding for $600,000 to be used as an office. Pald $100,000 in cash and signed a note payable promising to
pay the balance over several years.
c. Purchased $3,000 of office supplies for cash.
d. Purchased $72000 of office equipment on credit.
e. Littlechlid made reservations at a hotel hosting a kitchen and bath design conference In August 2020. He will send a $1,000
deposit on July 1, 2020.
f. Completed a project on credit and billed the client $5,200 for the work.
g. Pald a local online newspaper $3,500 for an announcement that the office had opened.
h. Completed a project for a cllent and collected $4,000 cash.
I. Made a $4,000 payment on the equlpment purchased in (d).
J. Received $2,500 from the clent described in (f).
k. Pald $7.000 cash for the office secretary's wages.
I. Littlechild withdrew $3,600 cash from the company bank account to pay personal living expenses.
Requlred:
182. 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
transection/event does not affect equity or do not require a Journal entry, select "No Affect on Equlty" In the 'Explanation of equlty
transaction' field.)
Assets
Liabilities
Equity
Accounts
Receivable
Office
Supplies
Littlechild,
Сapital
Explanation of
Equity Transaction
Office
Accounts
Notes
Cash
Building
Equipment
Payable
Payable
(a)
Transcribed Image Text:George Littechiid started a new kitchen and batn design business called Littlechiid Enterprises. Tne following activities occurred during Its first month of operations, March 2020: a. Littlechild Invested $160,000 cash and office equipment valued at $20,000 In the business. b. Purchased a small bullding for $600,000 to be used as an office. Pald $100,000 in cash and signed a note payable promising to pay the balance over several years. c. Purchased $3,000 of office supplies for cash. d. Purchased $72000 of office equipment on credit. e. Littlechlid made reservations at a hotel hosting a kitchen and bath design conference In August 2020. He will send a $1,000 deposit on July 1, 2020. f. Completed a project on credit and billed the client $5,200 for the work. g. Pald a local online newspaper $3,500 for an announcement that the office had opened. h. Completed a project for a cllent and collected $4,000 cash. I. Made a $4,000 payment on the equlpment purchased in (d). J. Received $2,500 from the clent described in (f). k. Pald $7.000 cash for the office secretary's wages. I. Littlechild withdrew $3,600 cash from the company bank account to pay personal living expenses. Requlred: 182. 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 transection/event does not affect equity or do not require a Journal entry, select "No Affect on Equlty" In the 'Explanation of equlty transaction' field.) Assets Liabilities Equity Accounts Receivable Office Supplies Littlechild, Сapital Explanation of Equity Transaction Office Accounts Notes Cash Building Equipment Payable Payable (a)
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 (A = L+ E). Littlechild Enterprises' total assets of
resulted from incurring
in liabilities.
x 100 =
76 %
Transcribed Image Text: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 (A = L+ E). Littlechild Enterprises' total assets of resulted from incurring in liabilities. x 100 = 76 %
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