Question

Required information Use the following information for exercise 15 to 18 LO P2 The following information applies to the questions displayed below! On October 1, Ebony Ernst organized Ernst Consulting, on October 3, the owner contributed $83,850 in assets to launch the business. On October 31, the company's records show the following items and amounts. $ 1.890 Cash $11,580 Accounts 13,860 receivable office supplies 3,140 Land 46,000 Office equipment 17,820 Accounts payable 8,400 Owner investments 83,850 Cash withdrawals by owner Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses 13,860 3,390 6,860 880 690 Exercise 1-15 Preparing an income statement LO P2 Using the above information prepare an October income statement for the business. ERNST CONSULTING Income Statement

Answer 1

ERNST CONSULTING
Income Statement
Particulars	Amount ($)	Amount ($)
Revenues
Consulting Revenue	13,860
Total Revenues (a)		13,860
Expenses
Rent Expenses	3,390
Salaries Expenses	6,860
Telephone Expenses	880
Miscellaneous Expenses	690
Total Expenses (b)		11,820
Net Income (a) - (b)		2,040