Designer Dry Cleaning showed the following information for its first and second months just ended, March and April of 2023:

*Christopher Dior made a $10,000 investment during March and had withdrawals of $1,000 in March and $25,100 in April.

Required
Use the information provided to complete a statement of changes in equity and a balance sheet for each of March and April 2023. Note: Prepare the statements on a comparative13 basis similar to the statements for Spin Master in Appendix III at the end of the textbook.

Analysis Component:
a. Liabilities increased by $25,200 from March 31, 2023, to April 30, 2023. Review the balance sheet and identify why liabilities increased.
b. Equity increased by $34,400 during March and by $23,400 during April, yet profit was much higher in April. Explain.

Transcribed Image Text:

Cash Cleaning supplies Prepaid rent Account Title Equipment Accounts payable Notes payable Christopher Dior, capital* 7,000 3,500 12,000 76,000 700 40,000 ? April 30, 2023 3,000 900 16,000 30,000 500 15,000 ? March 31, 2023