Question

Check my work [The following information applies to the questions displayed below.) On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,200 in assets to launch the business. On October 31, the company's records show the following items and amounts. Cash Accounts receivable Office supplies Land office equipment Accounts payable Owner investments $10,710 14, 160 3,450 46, 630 18,170 8,630 84, 200 Cash withdrawals by owner Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses $ 2, 180 14. 160 3,750 7. 160 780 600 Using the above information prepare an October 31 balance sheet for Ernst Consulting.

Answer 1

Balance Sheet
As of October 31
Assets		Liabilities
Cash	10710	Accounts Payable	8630
Accounts Receivable	14160
Office Supplies	3450
Land	46030	Equity
Office Equipment	18170	Ernst, Capital	83890
Total assets	92520	Total Liabilities and Equity	92520
Workings:
Consulting revenue	14160
Less: Expenses
Rent expense	3750
Salaries expense	7160
Telephone expense	780
Miscellaneous expense	600
Total Expenses	12290
Net income	1870
Owner, investments	84200
Add: Net income	1870
Less: Owner, Withdrawals	-2180
Ernst, Capital	83890