On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,580 in assets in exchange for its common stock to launch the business. On October 31, the company's records show the following items and amounts. Retained earnings, October 1 as $0. $ 9,390 16,020 3,830 45,980 18,550 9,060 84, 580 Cash Accounts receivable Office supplies Land Office equipment Accounts payable Common stock Cash dividends Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses $ 2,650 16,020 4,190 7,570 830 650 Exercise 1-17 Preparing a balance sheet LO P2 Using the above information prepare an October 31 balance sheet for Ernst Consulting. ERNST CONSULTING Balance Sheet Assets Cash Accounts payable Accounts receivable Office supplies Total liabilities Equity Office equipment Common stock Retained earnings Land Total equity Total assets 0 Total liabilities and equity 2$
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,580 in assets in exchange for its common stock to launch the business. On October 31, the company's records show the following items and amounts. Retained earnings, October 1 as $0. $ 9,390 16,020 3,830 45,980 18,550 9,060 84, 580 Cash Accounts receivable Office supplies Land Office equipment Accounts payable Common stock Cash dividends Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses $ 2,650 16,020 4,190 7,570 830 650 Exercise 1-17 Preparing a balance sheet LO P2 Using the above information prepare an October 31 balance sheet for Ernst Consulting. ERNST CONSULTING Balance Sheet Assets Cash Accounts payable Accounts receivable Office supplies Total liabilities Equity Office equipment Common stock Retained earnings Land Total equity Total assets 0 Total liabilities and equity 2$
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Required information
Use the following information for exercise 15 to 18 LO P2
[The following information applies to the questions displayed below.]
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,580 in assets in
exchange for its common stock to launch the business. On October 31, the company's records show the following items
and amounts. Retained earnings, October 1 as $0.
$ 9,390
16,020
3,830
45,980
18,550
9,060
84,580
Cash
Accounts receivable
Office supplies
Cash dividends
Consulting revenue
Rent expense
Salaries expense
Telephone expense
Miscellaneous expenses
$ 2,650
16,020
4,190
Land
Office equipment
Accounts payable
7,570
830
650
Common stock
Exercise 1-17 Preparing a balance sheet LO P2
Using the above information prepare an October 31 balance sheet for Ernst Consulting.
ERNST CONSULTING
Balance Sheet
Assets
Cash
Accounts payable
Accounts receivable
Office supplies
Total liabilities
Equity
Office equipment
Common stock
Retained earnings
Land
Total assets
Total equity
O Total liabilities and equity
24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F57bab7ca-7707-4175-9d89-135a9fbdb48d%2Fbed4f418-87d7-4f5d-ab15-a9f269e6f31b%2Fxjvzez9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Use the following information for exercise 15 to 18 LO P2
[The following information applies to the questions displayed below.]
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,580 in assets in
exchange for its common stock to launch the business. On October 31, the company's records show the following items
and amounts. Retained earnings, October 1 as $0.
$ 9,390
16,020
3,830
45,980
18,550
9,060
84,580
Cash
Accounts receivable
Office supplies
Cash dividends
Consulting revenue
Rent expense
Salaries expense
Telephone expense
Miscellaneous expenses
$ 2,650
16,020
4,190
Land
Office equipment
Accounts payable
7,570
830
650
Common stock
Exercise 1-17 Preparing a balance sheet LO P2
Using the above information prepare an October 31 balance sheet for Ernst Consulting.
ERNST CONSULTING
Balance Sheet
Assets
Cash
Accounts payable
Accounts receivable
Office supplies
Total liabilities
Equity
Office equipment
Common stock
Retained earnings
Land
Total assets
Total equity
O Total liabilities and equity
24
Expert Solution
Step 1
|
ERNST CONSULTING |
||
|
Revenue |
|
|
|
Consulting Revenue |
$16,020 |
|
|
|
|
|
|
Total revenue |
|
$16,020 |
|
|
|
|
|
Expenses |
|
|
|
Rent expense |
4190 |
|
|
Salaries expense |
7570 |
|
|
Telephone expense |
830 |
|
|
Miscellaneous expense |
650 |
|
|
Total expenses |
|
13,240 |
|
|
|
|
|
Net Income |
|
$2780 |
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