On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $85,360 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 $ 7,010 Cash dividends $ 3,390 Accounts receivable 18,350 Consulting revenue 18,350 Office supplies 4,480 Rent expense 4,820 Office equipment 19,360 Salaries expense 8,370 Land 46,040 Telephone expense 910 Accounts payable 9,740 Miscellaneous expenses 720 Common stock 85,360 Exercise 1-20 (Algo) Preparing a balance sheet LO P2 Use the above information to prepare a December 31 balance sheet for Ernst Consulting.
On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $85,360 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 $ 7,010 Cash dividends $ 3,390 Accounts receivable 18,350 Consulting revenue 18,350 Office supplies 4,480 Rent expense 4,820 Office equipment 19,360 Salaries expense 8,370 Land 46,040 Telephone expense 910 Accounts payable 9,740 Miscellaneous expenses 720 Common stock 85,360 Exercise 1-20 (Algo) Preparing a balance sheet LO P2 Use the above information to prepare a December 31 balance sheet for Ernst Consulting.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $85,360 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 | $ 7,010 | Cash dividends | $ 3,390 |
| 18,350 | Consulting revenue | 18,350 | |
| Office supplies | 4,480 | Rent expense | 4,820 |
| Office equipment | 19,360 | Salaries expense | 8,370 |
| Land | 46,040 | Telephone expense | 910 |
| Accounts payable | 9,740 | Miscellaneous expenses | 720 |
| Common stock | 85,360 |
Exercise 1-20 (Algo) Preparing a balance sheet LO P2
Use the above information to prepare a December 31 balance sheet for Ernst Consulting.
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