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 $83,390 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 Also assume the following: $ 13,210 Cash dividends 13,320 Consulting revenue 2,720 Rent expense 17,350 Salaries expense 45,910 Telephone expense 7,970 Miscellaneous expenses 83,390 $ 1,460 13,320 2,950 6,290 830 640 a. The owner's initial investment consists of $37,480 cash and $45,910 in land in exchange for its common stock. b. The company's $17,350 equipment purchase is paid in cash. c. Cash paid to employees is $1,040. The accounts payable balance of $7,970 consists of the $2,720 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 $13,320 consulting revenue earned. Loing the above information prepare a December statement of cash flows for Ernst Consulting.
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 $83,390 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 Also assume the following: $ 13,210 Cash dividends 13,320 Consulting revenue 2,720 Rent expense 17,350 Salaries expense 45,910 Telephone expense 7,970 Miscellaneous expenses 83,390 $ 1,460 13,320 2,950 6,290 830 640 a. The owner's initial investment consists of $37,480 cash and $45,910 in land in exchange for its common stock. b. The company's $17,350 equipment purchase is paid in cash. c. Cash paid to employees is $1,040. The accounts payable balance of $7,970 consists of the $2,720 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 $13,320 consulting revenue earned. Loing the above information prepare a December statement of cash flows for Ernst Consulting.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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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 $83,390 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
Also assume the following:
$ 13,210 Cash dividends
13,320 Consulting revenue
2,720 Rent expense
17,350 Salaries expense
45,910 Telephone expense
7,970 Miscellaneous expenses
83,390
$ 1,460
13,320
2,950
6,290
830
640
a. The owner's initial investment consists of $37,480 cash and $45,910 in land in exchange for its common
stock.
b. The company's $17,350 equipment purchase is paid in cash.
c. Cash paid to employees is $1,040. The accounts payable balance of $7,970 consists of the $2,720 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 $13,320 consulting revenue earned.
Using the above information prepare a December statement of cash flows for Ernst Consulting.
Note: Cash outflows should be indicated by a minus sign.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2f2d8308-4617-4f9f-b9aa-7267aedefe16%2Fd7b33b3a-d1ab-4321-91bb-67afda5dcef0%2Fm3le1fs_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ok
10
nt
int
ences
!
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 $83,390 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
Also assume the following:
$ 13,210 Cash dividends
13,320 Consulting revenue
2,720 Rent expense
17,350 Salaries expense
45,910 Telephone expense
7,970 Miscellaneous expenses
83,390
$ 1,460
13,320
2,950
6,290
830
640
a. The owner's initial investment consists of $37,480 cash and $45,910 in land in exchange for its common
stock.
b. The company's $17,350 equipment purchase is paid in cash.
c. Cash paid to employees is $1,040. The accounts payable balance of $7,970 consists of the $2,720 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 $13,320 consulting revenue earned.
Using the above information prepare a December statement of cash flows for Ernst Consulting.
Note: Cash outflows should be indicated by a minus sign.
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