On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $82,890 in assets inexchange for its common stock to launch the business. On December 31, the company's records show the following itemsand amounts.CashAccounts receivableOffice suppliesOffice equipmentLandAccounts payableCommon stockERNST CONSULTINGStatement of Retained EarningExercise 1-19 (Algo) Preparing a statement of retained earnings LO P2Using the above information prepare a December statement of retained earnings for Ernst Consulting. Hint: Retained Earnings onDecember 1 was $0.Retained earnings, December 1Add: Net incomeAnswer is not complete.Cash dividendsConsulting revenueRent expense16,780 Salaries expense46,010 Telephone expense7,360 Miscellaneous expenses82,890Less: DividendsRetained earnings, December 31$ 15,14012,7202,110$$ 83012,7202,3805,6207806003,3403,3408302,510

Statement of retained earnings is the one which is prepared by the entity to determine the ending…

Answered: On December 1, Jasmin Ernst organized…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Accounting Equation Katherine Brewer is the stockholder and operator of Our Idol LLC, a motivational consulting business. At the end of its accounting period, December 31, 20Y2, Our Idol has assets of $745,000 and liabilities of $179,000. Using the accounting equation, determine the following amounts: a. Stockholders' equity as of December 31, 20Y2. %$4 b. Stockholders' equity as of December 31, 20Y3, assuming that assets increased by $142,000 and liabilities increased by $43,000 during 20Y3. %24 tサ
AreaYou have been hired as an accounting intern for Buckeye Insulation and Acoustics. You have been asked to prepare the statement of retained earnings based on the following data: Cash dividends $ 50,000 Expenses 363,800 Revenues 635, 200 Retained earnings appropriated, January 1 150,000 Stock dividends 125, 300 Unappropriated retained earnings, January 1 460, 975 How much will you report for ending retained earnings? a. $557,075 b. $407,075 c. $832,375 d. $707,075
Current Attempt in Progress Pharoah Corporation was formed on January 1, 2025. At December 31, 2025, Jennifer Davis, the president and sole stockhol decided to prepare a balance sheet, which appeared as follows. Pharoah Corporation Balance Sheet December 31, 2025 Assets Liabilities and Stockholders' Equity Cash $21.500 Accounts payable $33,700 Accounts receivable 60,000 Notes payable 16.900 Inventory 38,000 Boat loan 22,400 Boat 23.500 Stockholders' equity 70,000 Jennifer willingly admits that she is not an accountant by training. She is concerned that her balance sheet might not be com has provided you with the following additional information. 1 2. The boat actually belongs to Jennifer, not to Pharoah Corporation. However, because she thinks she might take cust on the boat occasionally, she decided to list it as an asset of the company. To be consistent, she also listed as a liabilit corporation her personal loan that she took out at the bank to buy the boat. The inventory was…
What is wrong with my balance sheet? Why isn't it complete?
On January 1, 2021, Red Flash Photography had the following balances: Cash, $29,000; Supplies, $9,700; Land, $77,000; Deferred Revenue, $6,700; Common Stock $67,000; and Retained Earnings, $42,000. During 2021, the company had the following transactions: 1. February 15 Issue additional shares of common stock, $37,000. 2. May 20 Provide services to customers for cash, $52,000, and on account, $47,000. 3. August 31 Pay salaries to employees for work in 2021, $40,000. 4. October 1 Purchase rental space for one year, $29,000. 5. November 17 Purchase supplies on account, $39,000. 6. December 30 Pay dividends, $3,700. The following information is available on December 31, 2021: Employees are owed an additional $5,700 in salaries. Three months of the rental space has expired. Supplies of $6,700 remain on hand. All of the services associated with the beginning deferred revenue have been performed. Record the adjusting entry for supplies…
PLEASE PROVIDE ANSWER IN TEXT STEPWISE AND ALSO EXPLANATION OF ANSWER...? Nash's Trading Post, LLC compiled the following financial information as of December 31, 2022: Service revenue Common stock Equipment Operating expenses Cash Dividends Supplies Accounts payable Accounts receivable Retained earnings, 1/1/22 $825000 175000 225000 725000 200000 55000 30000 100000 290000 425000 Nash's,LLC's retained earnings on December 31, 2022 are:
On January 1, Year 2, the following information was drawn from the accounting records of Carter Company: cash of $475; land of $2,625; notes payable of $775; and common stock of $1,705. Required a. Determine the amount of retained earnings as of January 1, Year 2. b. After looking at the amount of retained earnings, the chief executive officer (CEO) wants to pay a $575 cash dividend to the stockholders. Can the company pay this dividend? c. As of January 1, Year 2, what percentage of the assets were acquired from creditors? d. As of January 1, Year 2, what percentage of the assets were acquired from investors? e. As of January 1, Year 2, what percentage of the assets were acquired from retained earnings? f. Create an accounting equation using percentages instead of dollar amounts on the right side of the equation. g. During Year 2, Carter Company earned cash revenue of $720, paid cash expenses of $410, and paid a cash dividend of $61. (Hint. It is helpful to record these events under…
On January 1, Year 2, the following information was drawn from the accounting records of Carter Company: cash of $475; land of $2,625; notes payable of $775; and common stock of $1,705. Required a. Determine the amount of retained earnings as of January 1, Year 2. b. After looking at the amount of retained earnings, the chief executive officer (CEO) wants to pay a $575 cash dividend to the stockholders. Can the company pay this dividend? c. As of January 1, Year 2, what percentage of the assets were acquired from creditors? d. As of January 1, Year 2, what percentage of the assets were acquired from investors? e. As of January 1, Year 2, what percentage of the assets were acquired from retained earnings? f. Create an accounting equation using percentages instead of dollar amounts on the right side of the equation. g. During Year 2, Carter Company earned cash revenue of $720, paid cash expenses of $410, and paid a cash dividend of $61. (Hint. It is helpful to record these events under…
ss.
Accounts Cash Salaries expense Accounts payable Retained earnings Utilities expense Supplies Service revenue Common stock Required: Use only the appropriate accounts to prepare an income statement. COWBOY LAW FIRM Income Statement For the Period Ended December 31 Common stock Accounts payable Expenses: Cash Cash Cash Cash Net income Total expenses Balances $5,300 2,150 3,300 3,850 1,100 13,700 9,200 5,900 2,150 1,100 3,850 5,300 $ $ 60 $ 9,200 5,900 12,400 (9,100)

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