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 $85,160 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 Ac ounts payable Common stock $ 7,520 Cash dividends Consulting revenue Rent expense 17,950 4,310 19,190 Salaries expense 46,000 Telephone expense 9,600 Miscellaneous expenses 85,160 $ 3,190 17,950 4,720 8,220 900 710 Ising the above information prepare a December statement of retained earnings for Ernst Consulting. Hint: Retained Earnings on December 1 was $0.
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 $85,160 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 Ac ounts payable Common stock $ 7,520 Cash dividends Consulting revenue Rent expense 17,950 4,310 19,190 Salaries expense 46,000 Telephone expense 9,600 Miscellaneous expenses 85,160 $ 3,190 17,950 4,720 8,220 900 710 Ising the above information prepare a December statement of retained earnings for Ernst Consulting. Hint: Retained Earnings on December 1 was $0.
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 $85,160 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
ERNST CONSULTING
Statement of Retained Earning
Retained earnings, December 1
Add: Net income
Using the above information prepare a December statement of retained earnings for Ernst Consulting. Hint: Retained Earnings on
December 1 was $0.
Less: Dividends
$
$ 7,520 Cash dividends
17,950
4,310
19,190
46,000
9,600
85,160
$
Consulting revenue
Rent expense
Salaries expense
Telephone expense
Miscellaneous expenses
$ 3,190
17,950
4,720
8,220
900
710
3,450
3,450
6,900
3,190
3,710](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1dad50b2-f7fb-4d6d-84a3-1c38c8704b3a%2F818794ea-8982-4a4b-ac73-d8ce0a0a08e3%2Fos0wbjb_processed.png&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 $85,160 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
ERNST CONSULTING
Statement of Retained Earning
Retained earnings, December 1
Add: Net income
Using the above information prepare a December statement of retained earnings for Ernst Consulting. Hint: Retained Earnings on
December 1 was $0.
Less: Dividends
$
$ 7,520 Cash dividends
17,950
4,310
19,190
46,000
9,600
85,160
$
Consulting revenue
Rent expense
Salaries expense
Telephone expense
Miscellaneous expenses
$ 3,190
17,950
4,720
8,220
900
710
3,450
3,450
6,900
3,190
3,710
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