Question

Path Home Chapter 01 Homework omework Saved Help S. On October 1, Ebony Ernst organized trnst Consulting; on October 3, the owner contributed $84,000 in assets in exchange for its common stock to launch the business. On October 31, the company's records show the followin items and amounts. Retained earnings, October 1 as $0. Cash Accounts receivable office supplies Land $11,360 14,000 3,250 46,000 18,000 8,500 84,000 Cash dividends Consulting revenue Rent expense salaries expense Telephone expense Miscellaneous expenses $ 2,000 14,000 3,550 7,000 760 580 Office equipment Accounts payable Common stock Using the above information prepare an October 31 balance sheet for Ernst Consulting ERNST CONSULTING Balance Sheet As of October 31 Assets Liabilities Cash $ 8,500 Accounts receivable Office supplies Office equipment Land 11,360 Accounts payable 14,000 3,250 18,000 46,000 Common stock O Retained earnings Equity 84,000 110 84,110 92,610 Total assets S 92,610 frotal liabilities and equity S < Prev 6 of 12 Next >

Answer 1

Solution:

Ending balance of retained earnings = 14000-3550-7000-760-580-2000 = $110

110 Assets Ernst Consuting Balance Sheet Liabilities and Owner's Equity Owner's Equity: $46,000 Common Stock $18,000 Retained earnings $84,000 $110 Fixed Assets: Land Office Equipment Current Assets: Cash Accounts receivable Office supplies $11,360 Current Liabilities: $14,000 Accounts Payable $3,250 $8.500 14 Total Assets $92,610 Total Liabilities and Owner's Equity $92,610 16 17 2) Sheet196 Sheet197 ) Sheet193 ) Sheet194 She