Question

Submit 29 Help Save & Exit 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 $83,660 in assets to launch the business. On October 31, the company's records show the following items and amounts Part 2 of 3 Cash Accounts receivable office supplies Land Office equipment Accounts payable Owner investments $12.640 13,720 2,990 45,940 17,710 8,230 83,660 Cash withdrawals by owner Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses 8 01:03 $ 1,760 13.720 3,210 6,690 870 680 Using the above information prepare an October statement of owner's equity for Ernst Consulting. ERNST CONSULTING Statement of Owner's Equity For Month Ended October 31 0 S 118 Next >

Answer 1

Working Notes:
	Calculation of Net income
	Consulting revenue	$               13,720
	Less: Expenses
	Rent Expenses	$                 3,210
	Salaries Expenses	$                 6,690
	Telephone Expenses	$                     870
	Miscllaneous Expenses	$                     680
	Total Expenses	$               11,450
	Net Income	$                 2,270
Solution:
	Statement of Owner's Equity
	For the year Ended October 31
	Beginning baance Owner's Equity	$                        -
	Add: Owner's Contribution	$               83,660
	Add: Net income of the year	$                 2,270
	Total	$               85,930
	Less:
	Cash Withdrawals by Owner	$                 1,760
	Owner's Equity at the End	$               84,170