On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,470 in assets in exchange for its common stock to launch the business. On December 31, the company's records show the following items and amounts. Cash Accounts receivable office supplies Office equipment Land Accounts payable Common stock $9,750 Cash dividends 15,620 Consulting revenue 3,710 Rent expense 18,450 Salaries expense 45,970 Telephone expense 8,900 Miscellaneous expenses 84,470 $ 2,530 15,620 4,070 7,450 810 630

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,470 in assets in exchange for its common stock to launch the business. On December 31, the company’s records show the following items and amounts:

- **Assets:**
  - Cash: $9,750 
  - Accounts Receivable: $15,620 
  - Office Supplies: $3,710 
  - Office Equipment: $18,450 
  - Land: $45,970 

- **Liabilities:**
  - Accounts Payable: $8,900 

- **Equity:**
  - Common Stock: $84,470 
  - Cash Dividends: $2,530

- **Revenue:**
  - Consulting Revenue: $15,620 

- **Expenses:**
  - Rent Expense: $4,070 
  - Salaries Expense: $7,450 
  - Telephone Expense: $810 
  - Miscellaneous Expenses: $630
Transcribed Image Text:On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,470 in assets in exchange for its common stock to launch the business. On December 31, the company’s records show the following items and amounts: - **Assets:** - Cash: $9,750 - Accounts Receivable: $15,620 - Office Supplies: $3,710 - Office Equipment: $18,450 - Land: $45,970 - **Liabilities:** - Accounts Payable: $8,900 - **Equity:** - Common Stock: $84,470 - Cash Dividends: $2,530 - **Revenue:** - Consulting Revenue: $15,620 - **Expenses:** - Rent Expense: $4,070 - Salaries Expense: $7,450 - Telephone Expense: $810 - Miscellaneous Expenses: $630
**Title:** Preparing a Balance Sheet for Ernst Consulting

**Instructions:**
Use the provided information to prepare a balance sheet dated December 31 for Ernst Consulting.

**Table Layout:**

1. **Header Section:**
   - The table is titled "ERNST CONSULTING."
   - Below the title, it states "Balance Sheet."

2. **Column Structure:**
   - The table is organized into several rows and columns, representing various sections of a balance sheet.
   - Each row is divided into multiple sections, prepared to list assets, liabilities, and equity.

3. **Content Structure:**
   - The table appears to have placeholders for financial data, with cells available for input.
   - The placeholder values in the final row indicate a total with "$0" in two sections, suggesting areas for financial totals.

4. **Usage:**
   - This template is intended to guide the user in calculating and entering financial data.
   - It is structured to facilitate organization and clarity when presenting financial information for Ernst Consulting.

**Conclusion:**
Complete the table by filling in the appropriate financial details for Ernst Consulting as of December 31, ensuring that totals are accurately calculated and placed in the provided fields.
Transcribed Image Text:**Title:** Preparing a Balance Sheet for Ernst Consulting **Instructions:** Use the provided information to prepare a balance sheet dated December 31 for Ernst Consulting. **Table Layout:** 1. **Header Section:** - The table is titled "ERNST CONSULTING." - Below the title, it states "Balance Sheet." 2. **Column Structure:** - The table is organized into several rows and columns, representing various sections of a balance sheet. - Each row is divided into multiple sections, prepared to list assets, liabilities, and equity. 3. **Content Structure:** - The table appears to have placeholders for financial data, with cells available for input. - The placeholder values in the final row indicate a total with "$0" in two sections, suggesting areas for financial totals. 4. **Usage:** - This template is intended to guide the user in calculating and entering financial data. - It is structured to facilitate organization and clarity when presenting financial information for Ernst Consulting. **Conclusion:** Complete the table by filling in the appropriate financial details for Ernst Consulting as of December 31, ensuring that totals are accurately calculated and placed in the provided fields.
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