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 $83,010 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. $ 14,890 Cash dividends 12,820 Consulting revenue $ 930 12,820 2,530 5,780 790 Cash Accounts receivable office supplies office equipment Land Accounts payable 2,290 Rent expense 16,900 Salaries expense 45,960 Telephone expense 7,670 Miscellaneous expenses 83,010 610 Common stock Also assume the following: a. The owner's initial investment consists of $37,050 cash and $45,960 in land in exchange for its common stock. b. The company's $16,900 equipment purchase is paid in cash. c. Cash paid to employees is $400. The accounts payable balance of $7,670 consists of the $2,290 office supplies purchase and $5,380 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 $12,820 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.) 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 Cash balance, December 1 Cash balance, December 31
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 $83,010 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. $ 14,890 Cash dividends 12,820 Consulting revenue $ 930 12,820 2,530 5,780 790 Cash Accounts receivable office supplies office equipment Land Accounts payable 2,290 Rent expense 16,900 Salaries expense 45,960 Telephone expense 7,670 Miscellaneous expenses 83,010 610 Common stock Also assume the following: a. The owner's initial investment consists of $37,050 cash and $45,960 in land in exchange for its common stock. b. The company's $16,900 equipment purchase is paid in cash. c. Cash paid to employees is $400. The accounts payable balance of $7,670 consists of the $2,290 office supplies purchase and $5,380 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 $12,820 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.) 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 Cash balance, December 1 Cash balance, December 31
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions dispłayed below.]
On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $83,010 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.
$ 14,890 Cash dividends
12,820 Consulting revenue
2,290
16,900 Salaries expense
45,960 Telephone expense
7,670 Miscellaneous expenses
$ 930
12,820
2,530
5,780
Cash
Accounts receivable
office supplies
Office equipment
Land
Rent expense
790
Accounts payable
610
Common stock
83,010
Also assume the following:
a. The owner's initial investment consists of $37,050 cash and $45,960 in land in exchange for its common stock.
b. The company's $16,900 equipment purchase is paid in cash.
c. Cash paid to employees is $400. The accounts payable balance of $7,670 consists of the $2,290 office supplies purchase and
$5,380 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 $12,820 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.)
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
Cash balance, December 1
Cash balance, December 31](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff4a23952-181b-4af3-a922-942f957360c2%2F9e4a5bf6-725b-4a8f-8486-b4bb7eb5269b%2Fyvhmrx_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions dispłayed below.]
On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $83,010 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.
$ 14,890 Cash dividends
12,820 Consulting revenue
2,290
16,900 Salaries expense
45,960 Telephone expense
7,670 Miscellaneous expenses
$ 930
12,820
2,530
5,780
Cash
Accounts receivable
office supplies
Office equipment
Land
Rent expense
790
Accounts payable
610
Common stock
83,010
Also assume the following:
a. The owner's initial investment consists of $37,050 cash and $45,960 in land in exchange for its common stock.
b. The company's $16,900 equipment purchase is paid in cash.
c. Cash paid to employees is $400. The accounts payable balance of $7,670 consists of the $2,290 office supplies purchase and
$5,380 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 $12,820 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.)
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
Cash balance, December 1
Cash balance, December 31
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