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 $82,780 in assets in exchange for its common stock to launch the business. On October 31, the company's records show the following items and amounts. Retained earnings, October 1 as $0. Cash Accounts receivable Office supplies Land Office equipment Accounts payable Common stock $15,760 12,590 1,960 46,030 16,580 7,250 82,780 Cash dividends Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses $ 640 12,590 2,270 5,450 760 580 Exercise 1-15 Preparing an income statement LO P2 Jsing the above information prepare an October income statement for the business, ERNST CONSULTING Income Statement < Prev 1 2 3 of 3 !! Next >

Answer 1

		INCOME STATEMENT
	A	Consulting Revenue		$12,590
		Expenses:
	b	Salaries expense	$5,450
	c	Rent Expense	$2,270
	d	Telephone expense	$760
	e	Miscellaneous expense	$580
	F=b+c+d+e	Total Expenses		$9,060
	G=A-F	Net Income		$3,530