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 $82,650 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. $ 15,200 Cash dividends 12,410 Consulting revenue 1,770 Rent expense 16,450 Salaries expense 46,080 Telephone expense 6,060 Miscellaneous expenses Cash $ 460 Accounts receivable Office supplies Office equipment 12,410 2,140 5,300 Land 750 Accounts payable Common stock 560 82,650 Also assume the following: a. The owner's initial investment consists of $36,570 cash and $46,080 in land in exchange for its common stock. b. The company's $16,450 equipment purchase is paid in cash. c. Cash paid to employees is $1,010. The accounts payable balance of $6,060 consists of the $1,770 office supplies purchase and $4,290 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 $12,410 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
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 $82,650 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. $ 15,200 Cash dividends 12,410 Consulting revenue 1,770 Rent expense 16,450 Salaries expense 46,080 Telephone expense 6,060 Miscellaneous expenses Cash $ 460 Accounts receivable Office supplies Office equipment 12,410 2,140 5,300 Land 750 Accounts payable Common stock 560 82,650 Also assume the following: a. The owner's initial investment consists of $36,570 cash and $46,080 in land in exchange for its common stock. b. The company's $16,450 equipment purchase is paid in cash. c. Cash paid to employees is $1,010. The accounts payable balance of $6,060 consists of the $1,770 office supplies purchase and $4,290 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 $12,410 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
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 $82,650 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.
$ 15,200 Cash dividends
12,410 Consulting revenue
1,770 Rent expense
16,450 Salaries expense
46,080 Telephone expense
6,060 Miscellaneous expenses
82,650
Cash
$ 460
Accounts receivable
Office supplies
Office equipment
12,410
2,140
5,300
Land
750
Accounts payable
560
Common stock
Also assume the following:
a. The owner's initial investment consists of $36,570 cash and $46,080 in land in exchange for its common stock.
b. The company's $16,450 equipment purchase is paid in cash.
c. Cash paid to employees is $1,010. The accounts payable balance of $6,060 consists of the $1,770 office supplies purchase and
$4,290 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 $12,410 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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3a4ddae5-baca-4b71-8862-232bf1c53e30%2Fff33eda1-0028-4357-ad77-ea30c051982e%2F0owg6hg_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 $82,650 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.
$ 15,200 Cash dividends
12,410 Consulting revenue
1,770 Rent expense
16,450 Salaries expense
46,080 Telephone expense
6,060 Miscellaneous expenses
82,650
Cash
$ 460
Accounts receivable
Office supplies
Office equipment
12,410
2,140
5,300
Land
750
Accounts payable
560
Common stock
Also assume the following:
a. The owner's initial investment consists of $36,570 cash and $46,080 in land in exchange for its common stock.
b. The company's $16,450 equipment purchase is paid in cash.
c. Cash paid to employees is $1,010. The accounts payable balance of $6,060 consists of the $1,770 office supplies purchase and
$4,290 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 $12,410 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
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