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Required information Use the following information for the Exercises below. (Algo) [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. Cashi Accounts receivable office supplies office equipment Land Accounts payable Common stock $ 14,890 Cash dividends 12,820 Consulting revenue 2,290 Rent expense 16,900 Salaries expense 45,960 Telephone expense 7,670 Miscellaneous expenses 83,010 Exercise 1-21 (Algo) Preparing a statement of cash flows LO P2 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. 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 $ 930 12,820 2,530 5,780 790 610 $ 0

Required information Use the following information for the Exercises below. (Algo) [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. Cashi Accounts receivable office supplies office equipment Land Accounts payable Common stock $ 14,890 Cash dividends 12,820 Consulting revenue 2,290 Rent expense 16,900 Salaries expense 45,960 Telephone expense 7,670 Miscellaneous expenses 83,010 Exercise 1-21 (Algo) Preparing a statement of cash flows LO P2 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. 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 $ 930 12,820 2,530 5,780 790 610 $ 0

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information Use the following information for the Exercises below. (Algo) [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. Cashi Accounts receivable office supplies office equipment Land Accounts payable Common stock $ 14,890 Cash dividends Consulting revenue Rent expense 12,820 2,290 16,900 Salaries expense 45,960 Telephone expense 7,670 Miscellaneous expenses 83,010 Exercise 1-21 (Algo) Preparing a statement of cash flows LO P2 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. 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 $ 930 12,820 2,530 5,780 790 610 $ 0
Transcribed Image Text:Required information Use the following information for the Exercises below. (Algo) [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. Cashi Accounts receivable office supplies office equipment Land Accounts payable Common stock $ 14,890 Cash dividends Consulting revenue Rent expense 12,820 2,290 16,900 Salaries expense 45,960 Telephone expense 7,670 Miscellaneous expenses 83,010 Exercise 1-21 (Algo) Preparing a statement of cash flows LO P2 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. 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 $ 930 12,820 2,530 5,780 790 610 $ 0
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