Question

Looking for a solution to this 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 $84,000 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 $11,360 14,000 3,250 46,000 18,000 8,500 84,000 Cash dividends Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses $ 2,000 14,000 3,550 7,000 760 580 Using the above information prepare an October 31 balance sheet for Ernst Consulting. Expenses ERNST CONSULTING Balance Sheet For Month Ended October 31 Revenues $ 3,550 Consulting fees earned 7,000 760 $ 14,000 Rent expense Salaries expense 14,000 Telephone expense Miscellaneous expenses 580 0 14,000 Total expenses $ 11,890 Total revenues $

Answer 1

Answer ERNST CONSULTING Balance sheet as on october 31 Liabilities Amount Asset Amounts Accounts Cash 11,360 payable 8,500 Accounts receivable 14,000 Equity Common stock 84,000 office supplies 3,250 Retained earnings llo Land 46.000 (working office note) 18,000 equipment Total equity Total Equity a Lrabilities $92,610 Total Assets $92,610 Working node profit for the year Revenue - Expense Consulting revenue 14,000 - Rent Expenses 3,550 Salaries 7000 + Telephone expenses 760+ Miscellanies expenses 580 Total Revenue = 14,000 Total Expense = 11,890 Profit for one year 14,000 - 11,890 = $2,110 profit for the year = $2,110 Less: cash dividends = $ 2000 Profit after payment of dividend = $110