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Window Help 68% wed 12:28 P 1-16 Help Save & Exit Submit Check my work i ne romowing inmormation appues to ine questions aispvayea Delow On October 1, Ebony Ernst organized Ernst Consulting: on October 3. the owner contributed $85.050 in assets in exchange for its common stock to launch the business. On October 31, the companys records show the following items and amounts 7,950Cash dividesds 17,500 Consulting reverge 4,200 Rent expense 46,010 Salaries expense 19,060 Telephone expense 9,430 Miscellaneous expenses 85,050 Accoants receivable Office supplies s 3,070 17,500 .530 8,090 880 office equipment Accounts payable Common Stock 690 Exercise 1-16 Preparing a statement of retained earnings LO P2 Using the above information prepare an October statement of retained eamings for Emst Consulting ERNST CONSULTING Statement of Retained Earnings Prev1 of1 Next
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Retained earnings is calculated by adding net profit for the period and deducting dividends paid in cash.

Income Statement for the month of October $ 17,500 Consulting revenue Less: Operating expenses Rent expense Salaries expense Telephone expense Miscellaneous expenses 690 $4,530 $8,090 880 Total operating expense Net Income $14,190 $3,310 ERNST CONSULTING Statement of Retained Earnings Beginning retained earnings $ Add: Net income of October $ 3,310 $ 3,310 $ 3,070 240 Less: Dividends paid Ending retained earnings

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