Required information [The following information applies to the questions displayed below.] On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $85,050 in assets to launch the business. On October 31, the company's records show the following items and amounts. Cash Accounts receivable Office supplies Land Office equipment Accounts payable Owner investments $ 7,950 15,040 4,200 46,010 19,060 9,430 85,050 Cash withdrawals by owner Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses $ 3,070 15,040 4,530 8,090 880 690
Required information [The following information applies to the questions displayed below.] On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $85,050 in assets to launch the business. On October 31, the company's records show the following items and amounts. Cash Accounts receivable Office supplies Land Office equipment Accounts payable Owner investments $ 7,950 15,040 4,200 46,010 19,060 9,430 85,050 Cash withdrawals by owner Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses $ 3,070 15,040 4,530 8,090 880 690
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 October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $85,050 in assets to launch
the business. On October 31, the company's records show the following items and amounts.
Cash
Accounts receivable
Office supplies
Land
$ 7,950
15,040
4,200
46,010
19,060
9,430
85,050
Cash withdrawals by owner
Consulting revenue
Rent expense
Salaries expense
Telephone expense
Miscellaneous expenses
$ 3,070
15,040
4,530
8,090
880
Office equipment
Accounts payable
Owner investments
690](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3e6c80bf-75a6-4283-8899-96bf8bd2ddb3%2Fcfbe71a0-2255-4fdb-b427-db98d609512f%2Fifstig8_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $85,050 in assets to launch
the business. On October 31, the company's records show the following items and amounts.
Cash
Accounts receivable
Office supplies
Land
$ 7,950
15,040
4,200
46,010
19,060
9,430
85,050
Cash withdrawals by owner
Consulting revenue
Rent expense
Salaries expense
Telephone expense
Miscellaneous expenses
$ 3,070
15,040
4,530
8,090
880
Office equipment
Accounts payable
Owner investments
690

Transcribed Image Text:Using the above information prepare an October income statement for the business.
ERNST CONSULTING
Income Statement
Net income
Expert Solution
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Step 1 Introduction
Income statement shows the net income or losses of the business by comparing revenues and losses.
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