On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $83,010 in assets to launch the business. On December 31, the company's records show the following items and amounts. Cash Accounts receivable Office supplies Land Office equipment Accounts payable Owner investments $ 14,890 Cash withdrawals by owner 12,820 Consulting revenue 2,298 Rent expense 45,960 Salaries expense 16,900 Telephone expense 7,670 Miscellaneous expenses 83,010 Exercise 1-21 (Algo) Preparing a statement of cash flows LO P2 $930 12,820 2,530 5,780 790 610 Also assume the following: a. The owner's initial investment consists of $37,050 cash and $45,960 in land. b. The company's $16,900 equipment purchase is paid in cash. c. Cash paid to employees is $400. The accounts payable balance of $7,670 consists of the $2,290 office supplies purchase and $5,380 in employee salaries yet to be paid. d. The company's rent expense, telephone expense, and miscellaneous expenses are paid in cash. e. No cash has yet been collected on the $12,820 consulting revenue earned. Using the above information prepare a December statement of cash flows for Ernst Consulting. (Cash outflows should be indicated by a minus sign.) ERNST CONSULTING Statement of Cash Flows For Month Ended December 31
On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $83,010 in assets to launch the business. On December 31, the company's records show the following items and amounts. Cash Accounts receivable Office supplies Land Office equipment Accounts payable Owner investments $ 14,890 Cash withdrawals by owner 12,820 Consulting revenue 2,298 Rent expense 45,960 Salaries expense 16,900 Telephone expense 7,670 Miscellaneous expenses 83,010 Exercise 1-21 (Algo) Preparing a statement of cash flows LO P2 $930 12,820 2,530 5,780 790 610 Also assume the following: a. The owner's initial investment consists of $37,050 cash and $45,960 in land. b. The company's $16,900 equipment purchase is paid in cash. c. Cash paid to employees is $400. The accounts payable balance of $7,670 consists of the $2,290 office supplies purchase and $5,380 in employee salaries yet to be paid. d. The company's rent expense, telephone expense, and miscellaneous expenses are paid in cash. e. No cash has yet been collected on the $12,820 consulting revenue earned. Using the above information prepare a December statement of cash flows for Ernst Consulting. (Cash outflows should be indicated by a minus sign.) ERNST CONSULTING Statement of Cash Flows For Month Ended December 31
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $83,010 in assets to
launch the business. On December 31, the company's records show the following items and amounts.
Cash
Accounts receivable
Office supplies
Land
Office equipment
Accounts payable
Owner investments
$ 14,890 Cash withdrawals by owner
12,820
Consulting revenue
Rent expense
2,290
45,960 Salaries expense
16,900 Telephone expense
7,670 Miscellaneous expenses
83,010
Exercise 1-21 (Algo) Preparing a statement of cash flows LO P2
$930
12,820
2,530
5,780
790
610
Also assume the following:
a. The owner's initial investment consists of $37,050 cash and $45,960 in land.
b. The company's $16,900 equipment purchase is paid in cash.
c. Cash paid to employees is $400. The accounts payable balance of $7,670 consists of the $2,290 office supplies purchase and
$5,380 in employee salaries yet to be paid.
d. The company's rent expense, telephone expense, and miscellaneous expenses are paid in cash.
e. No cash has yet been collected on the $12,820 consulting revenue earned.
Using the above information prepare a December statement of cash flows for Ernst Consulting. (Cash outflows should be indicated
by a minus sign.)
ERNST CONSULTING
Statement of Cash Flows
For Month Ended December 31
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