On October 1. Ebony Ernst organızed 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. Cash Accounts receivable office supplies Land $ 9,390 16,e20 3,83e 45,98e 18,55e 9,06e 84,58e Cash dividends consulting revenue Rent expense salaries expense Telephone expense Miscellaneous expenses $ 2,650 16,020 4,190 7,570 830 650 office equipment Accounts payable Common stock Exercise 1-15 Preparing an income statement LO P2 Using the above Information prepare an October Income statement for the business. ERNST CONSULTING Income Statement For Month Ended October 31 Revenues Consulting revenue Expenses Rent expense Salaries expense Telephone expense Miscellaneous expenses Net income

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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[The following information applles 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. Retalned earnings, October 1 as $0.
$ 9,390
16,020
3,83e
45,98e
18,55e
9,e6e
84,580
Cash dividends
Consulting revenue
Rent expense
Salaries expense
Telephone expense
Miscellaneous expenses
$ 2,650
16,e20
4,190
7,570
830
Cash
Accounts receivable
office supplies
Land
office equipment
Accounts payable
Common stock
650
Exercise 1-15 Preparing an income statement LO P2
Using the above Information prepare an October Income statement for the business.
ERNST CONSULTING
Income Statement
For Month Ended October 31
Revenues
Consulting revenue
Expenses
Rent expense
Salaries expense
Telephone expense
Miscellaneous expenses
Net income
Transcribed Image Text:[The following information applles 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. Retalned earnings, October 1 as $0. $ 9,390 16,020 3,83e 45,98e 18,55e 9,e6e 84,580 Cash dividends Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses $ 2,650 16,e20 4,190 7,570 830 Cash Accounts receivable office supplies Land office equipment Accounts payable Common stock 650 Exercise 1-15 Preparing an income statement LO P2 Using the above Information prepare an October Income statement for the business. ERNST CONSULTING Income Statement For Month Ended October 31 Revenues Consulting revenue Expenses Rent expense Salaries expense Telephone expense Miscellaneous expenses Net income
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Net income = Total Revenue - Total expenses

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