Designer Dry Cleaning showed the following information for its first and second months just ended, March and April of 2020:

Required

Use the information provided to complete a statement of changes in equity and a balance sheet for each of March and April 2020. Note: Prepare the statements on a comparative13 basis similar to the statements for Spin Master and WestJet in Appendix III at the end of the textbook.

Analysis Component:

a. Liabilities increased by $25,200 from March 31, 2020, to April 30, 2020. 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:

April 30, 2020 March 31, 2020 3,000 Account Title Cash. 7,000 3,500 12,000 Cleaning supplies. Prepaid rent. 900 16,000 Equipment. 76,000 30,000 Accounts payable.. Notes payable. Christopher Dior, capital" 700 40,000 500 15,000