Required information [The following information applies to the questions displayed below.] On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $85,460 in a exchange for its common stock to launch the business. On December 31, the company's records show the follo items and amounts. Cash. Accounts receivable Office supplies office equipment Land $6,650 Cash dividends 18,650 Consulting revenue 4,640 Rent expense 19,560 Salaries expense 46.000 Telephone expense $ 3,490 18,650 4,920 8,500 890
Required information [The following information applies to the questions displayed below.] On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $85,460 in a exchange for its common stock to launch the business. On December 31, the company's records show the follo items and amounts. Cash. Accounts receivable Office supplies office equipment Land $6,650 Cash dividends 18,650 Consulting revenue 4,640 Rent expense 19,560 Salaries expense 46.000 Telephone expense $ 3,490 18,650 4,920 8,500 890
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $85,460 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
$ 6,650
18,650
4,640
Cash dividends
Consulting revenue
Rent expense
19,560 Salaries expense
46,000 Telephone expense
9,890 Miscellaneous expenses
85,460
$ 3,490
18,650
4,920
8,500
890
700
Check my we
Also assume the following:
a. The owner's initial investment consists of $39,460 cash and $46,000 in land in exchange for its common stock.
b. The company's $19,560 equipment purchase is paid in cash.
c. Cash paid to employees is $3,250. The accounts payable balance of $9,890 consists of the $4,640 office supplies purchase and
$5,250 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 $18,650 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.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F27c9ffc8-caf5-4a01-9236-94db3faf410c%2F7c362458-4d9b-4495-b3f7-71b82b8f0686%2Fzs5sejh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $85,460 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
$ 6,650
18,650
4,640
Cash dividends
Consulting revenue
Rent expense
19,560 Salaries expense
46,000 Telephone expense
9,890 Miscellaneous expenses
85,460
$ 3,490
18,650
4,920
8,500
890
700
Check my we
Also assume the following:
a. The owner's initial investment consists of $39,460 cash and $46,000 in land in exchange for its common stock.
b. The company's $19,560 equipment purchase is paid in cash.
c. Cash paid to employees is $3,250. The accounts payable balance of $9,890 consists of the $4,640 office supplies purchase and
$5,250 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 $18,650 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.)
Transcribed Image Text:ERNST CONSULTING
Statement of Cash Flows
For Month Ended December 31
Cash flows from operating activities
Cash received from customers
Cash flows from investing activities
Cash flows from financing activities
Required information
Cash flows from operating activities
Cash received from customers
Cash flows from investing activities
Cash flows from financing activities
Cash balance, December 1
Cash balance, December 31
$
$
0
0
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