Question

Use the following information for exercise 15 to 18 LO P2 [The following information applies to the questions displayed below) On October 1, Ebony Emst organized Emnst Consulting, on October 3, the owner contributed $84,000 in assets to launch the business. On October 31, the company's r records show the following items and amounts. withdravala by ower &2,000 Accounts receivable 14, 000 Consulting revenue 14, 000 3,550 7,000 760 580 3,250 Rent 46,000 Salaries expense Land Office equipment payable 8,500 Misce 84,000 Exercise 1-16 Preparing a statement of owner's equity LO P2 Using the above information prepare an October statement of owner's equity for Enst Consulting of As of r 31 Land Add: Net income

Answer 1

	Ernst Consulting
	Income Statement
	For the month ended October 31
(a)	Revenues
	Consultancy fees earned		$ 14,000
	Total revenues
(b)	Expenses
	Salaries Expense	$    7,000
	Rent Expense	$    3,550
	Telephone Expense	$        760
	Miscellaneous Expense	$        580
	Total expense		$ 11,890
(a) - (b)	Net Income		$   2,110
	Ernst Consulting
	Statement of Owner's equity
	For the month ended October 31
	Ebony Ernst, Capital, October 1		0
Add:	Owner's contribution		$ 84,000
Add:	Net Income		$   2,110
			$ 86,110
Less:	Withdrawals by owner		$   2,000
	Ebony Ernst, Capital, October 31		$ 84,110