Skip to main contentChapter $1$ Lab AnswerSaved Help opens in a new window Save & Exit SubmitItem$1920$points eBook Print References Item $19$Problem $1-8$A Analyzing transactions and preparing financial statements LO$6,7,8$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 $$190,000$ cash and office equipment valued at $$26,000$ in the business.Purchased a small building for $$660,000$ to be used as an office. Paid $$130,000$ in cash and signed a note payable promising to pay the balance over several years.Purchased $$3,600$ of office supplies for cash.Purchased $$78,000$ 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 $$1,600$ deposit on July $1,2023.$Completed a project on credit and billed the client $$5,800$ for the work.Paid a local online newspaper $$4,100$ for an announcement that the office had opened.Completed a project for a client and collected $$4,600$ cash.Made a $$4,600$ payment on the equipment purchased in $($d$).$Received $$2,800$ from the client described in $($f$).$Paid $$8,200$ cash for the office secretary$\text{'}$s wages.Littlechild withdrew $$4,200$ 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 $74\%$ by debt. What does this mean? As part of your answer, include an explanation of how the $74\%$ was calculated. $($Round your answer to the nearest whole number.$)$