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 $82,650 in assets to launch the business. On October 31, the company's records show the following items and amounts. Cash Accounts receivable Office supplies Land Office equipment Accounts payable Common stock $ 12,560 12,410 1,770 46,080 16,450 6,060 82,650 Cash dividends $ 3,100 Consulting fees earned 12,410 Rent expense 2,140 Salaries expense 5,300 Telephone expense 750 Miscellaneous expenses 560 Using the above information prepare an October 31 balance sheet for Ernst Consulting.

Answer 1

Ernst Consulting Income Statement for the month ended October 31 Revenues! Consulting - $12,410 fees Canned a Expenses - Rent Expense $ 2140 2 salares Expense 5,300 2 Telephone Expene 750 - Miscellaneay expense Soo Total Expense $8,750 Net Income Closs) $3,660 $ 3,100 Less : Dividends Net Profit $560 ?

Eunst Consulting Balance Shad As of October 31 Assets Lahilities $6,060 $12,560 12,410 Accounts Payable Cash Accounts Receivable office Supplies land! office 1,770 Common 82,650 Stock +Net Profit 360 46,080 16,450 83,210. Equipment $89,270 $99,270