Question

Check my wor diu din OUTILS. Reldileu edinys, UCLover i as DU. 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. ERNST CONSULTING Balance Sheet $ 0 $

Answer 1

ERNST CONSULTING
BALANCE SHEET
As of October 31
Assets		Liabilities
Cash	$        11,360	Accounts Payable	$          8,500
Accounts receivable	$        14,000
Land	$        46,000	Equity
Office equipment	$        18,000	Common Stock	$        84,000
Office supplies	$          3,250	Retained earnings	$              110
		Total equity	$        84,110
Total assets	$        92,610	Total liabilities and equity	$        92,610

workings for above answer

Calculation of net income
Consulting Revenue	$        14,000
Rent Expense	$        (3,550)
Salaries expense	$        (7,000)
Telephone expense	$           (760)
Misc. Expense	$           (580)
Net income	$          2,110
Calculation of retained. earnings
Net income earned	2110
Less: Dividend paid	2000
Balance in retained earnings	110

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