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 $85,360 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 $ 7,010 Accounts receivable Office supplies 18,350 4,480 Office equipment 19,360 Land 46,040 Accounts payable 9,740 Common stock 85,360 Cash dividends Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses $ 3,390 18,350 4,820 8,370 910 720 Also assume the following: a. The owner's initial investment consists of $39,320 cash and $46,040 in land in exchange for its common stock. b. The company's $19,360 equipment purchase is paid in cash. c. Cash paid to employees is $3,110. The accounts payable balance of $9,740 consists of the $4,480 office supplies purchase and $5,260 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 $18,350 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. 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 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 $85,360 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 $ 7,010 Accounts receivable Office supplies 18,350 4,480 Office equipment 19,360 Land 46,040 Accounts payable 9,740 Common stock 85,360 Cash dividends Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses $ 3,390 18,350 4,820 8,370 910 720 Also assume the following: a. The owner's initial investment consists of $39,320 cash and $46,040 in land in exchange for its common stock. b. The company's $19,360 equipment purchase is paid in cash. c. Cash paid to employees is $3,110. The accounts payable balance of $9,740 consists of the $4,480 office supplies purchase and $5,260 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 $18,350 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. 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 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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 $85,360 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
$ 7,010
Accounts receivable
Office supplies
18,350
4,480
Office equipment
19,360
Land
46,040
Accounts payable
9,740
Common stock
85,360
Cash dividends
Consulting revenue
Rent expense
Salaries expense
Telephone expense
Miscellaneous expenses
$ 3,390
18,350
4,820
8,370
910
720
Also assume the following:
a. The owner's initial investment consists of $39,320 cash and $46,040 in land in exchange for its common stock.
b. The company's $19,360 equipment purchase is paid in cash.
c. Cash paid to employees is $3,110. The accounts payable balance of $9,740 consists of the $4,480 office supplies purchase and
$5,260 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 $18,350 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.
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
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe3b91c89-4564-4fb0-9dea-afe797ff78ec%2Fe23db06d-51f0-41ce-b958-3b1cab3dbfeb%2F41tkku_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 $85,360 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
$ 7,010
Accounts receivable
Office supplies
18,350
4,480
Office equipment
19,360
Land
46,040
Accounts payable
9,740
Common stock
85,360
Cash dividends
Consulting revenue
Rent expense
Salaries expense
Telephone expense
Miscellaneous expenses
$ 3,390
18,350
4,820
8,370
910
720
Also assume the following:
a. The owner's initial investment consists of $39,320 cash and $46,040 in land in exchange for its common stock.
b. The company's $19,360 equipment purchase is paid in cash.
c. Cash paid to employees is $3,110. The accounts payable balance of $9,740 consists of the $4,480 office supplies purchase and
$5,260 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 $18,350 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.
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
0
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