Question

Required information {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 46,030 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 7,160 780 500

Answer 1

$ 14,160 ERNST CONSULTING Income statement For Month Ended October 31 Revenues: Consulting fees earned $ 14,160 Total revenue (A) Expenses: Salaries expense 7,160 Rent expense 3,750 Telephone expense 780 Miscellaneous expense 600 Total expense (B) Net income (loss) (C) = (A)-(B) $ $ 12,290 1,870 ERNST CONSULTING Statement of Owner's Equity Ernst, Capital, October 1 Add: Investment by owner $ 84,200 Net income 1,870 $ 86,070 Less: Withdrawals by owner Ernst, Capital, October 31 -2,180 $ 83,890