Question

Here is a picture of the question

0, Ex 1170 Help Save&ExitSubmit Check my Required information Use the following information for exercises 15 to 18 LO P2 The following information applies to the questions displayed below On October 1, Ebony Emst crganized Ernst Consulting; on October 3, the owner contributed $85.360 in assets in exchange for its common stock to launch the business. On October 31, the companys records show the following tems and amounts ividends Accounts receivable18.500 Coosulting revene Oftice supplies otfice equipnent 60 Telephose Exercise 1-17 Preparing a balance sheet LO P2 Using the above information prepare an October 31 balance sheet for Emst Consulting Prev 1of1 Next ?

Answer 1

Balance sheet :

Assets	Amount	Liabilities & Stockholder's equity	Amount
current assets		Current liabilities
Cash	7010	Account payable	9740
Account receivable	18500
Office supplies	4480
Total current assets	29990	Total current liabilities	9740
Non current assets		Stockholder's equity
Land	46040	Common Stock	85360
Office equipment	19360	Retained earnings	290
Total non current assets	65400	Total Stockholder's equity	85650
Total Assets	95390	Total Liabilities & Stockholder's equity	95390

Net income = 18500-4820-8370-910-720 = 3680

Retained earnings = 3680-3390 = 290