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 $85,460 in assets to launch the business. On December 31, the company's records show the following items and amounts. Cash Accounts receivable office supplies Land office equipment Accounts payable Owner investments $ 6,650 Cash withdrawals by owner 18, 650 4,640 Consulting revenue Rent expense 46,000 Salaries expense 19,560 Telephone expense 9,890 Miscellaneous expenses 85, 460 xercise 1-21 (Algo) Preparing a statement of cash flows LO P2 $ 3,490 18,650 4,920 8,500 890 700 so assume the following: a. The owner's initial investment consists of $39,460 cash and $46,000 in land. b. The company's $19,560 equipment purchase is paid in cash. c. Cash paid to employees is $3,250. The accounts payable balance of $9,890 consists of the $4,640 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 $18,650 consulting revenue earned. sing the above information prepare a December statement of cash flows for Emst Consulting. ote: Cash outflows should be indicated by a minus sign.
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 $85,460 in assets to launch the business. On December 31, the company's records show the following items and amounts. Cash Accounts receivable office supplies Land office equipment Accounts payable Owner investments $ 6,650 Cash withdrawals by owner 18, 650 4,640 Consulting revenue Rent expense 46,000 Salaries expense 19,560 Telephone expense 9,890 Miscellaneous expenses 85, 460 xercise 1-21 (Algo) Preparing a statement of cash flows LO P2 $ 3,490 18,650 4,920 8,500 890 700 so assume the following: a. The owner's initial investment consists of $39,460 cash and $46,000 in land. b. The company's $19,560 equipment purchase is paid in cash. c. Cash paid to employees is $3,250. The accounts payable balance of $9,890 consists of the $4,640 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 $18,650 consulting revenue earned. sing the above information prepare a December statement of cash flows for Emst Consulting. ote: Cash outflows should be indicated by a minus sign.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![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 $85,460 in assets to
launch the business. On December 31, the company's records show the following items and amounts.
Cash
Accounts receivable.
Office supplies
Land
Office equipment
Accounts payable
Owner investments
Exercise 1-21 (Algo) Preparing a statement of cash flows LO P2
$ 6,650
18, 650
4,640
46,000
Cash withdrawals by owner
Consulting revenue
Rent expense
Salaries expense
19, 560 Telephone expense
9,890 Miscellaneous expenses
85,460
Also assume the following:
a. The owner's initial investment consists of $39,460 cash and $46,000 in land.
b. The company's $19,560 equipment purchase is paid in cash.
c. Cash paid to employees is $3,250. The accounts payable balance of $9,890 consists of the $4,640 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 $18,650 consulting revenue earned.
Cash flows from operating activities
Cash received from customers
Using the above information prepare a December statement of cash flows for Emst 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 investing activities
Cash flows from financing activities
Cash balance, December 1
Cash balance, December 31
$
0
$
$
0
0
$ 3,490
18,650
4,920
8,500
890
700
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F70cc9d25-a69b-47bc-ac76-4d1d1a1f1526%2F942489d3-2346-495f-9630-3fb391a54ec8%2F3fqos2o_processed.jpeg&w=3840&q=75)
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 $85,460 in assets to
launch the business. On December 31, the company's records show the following items and amounts.
Cash
Accounts receivable.
Office supplies
Land
Office equipment
Accounts payable
Owner investments
Exercise 1-21 (Algo) Preparing a statement of cash flows LO P2
$ 6,650
18, 650
4,640
46,000
Cash withdrawals by owner
Consulting revenue
Rent expense
Salaries expense
19, 560 Telephone expense
9,890 Miscellaneous expenses
85,460
Also assume the following:
a. The owner's initial investment consists of $39,460 cash and $46,000 in land.
b. The company's $19,560 equipment purchase is paid in cash.
c. Cash paid to employees is $3,250. The accounts payable balance of $9,890 consists of the $4,640 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 $18,650 consulting revenue earned.
Cash flows from operating activities
Cash received from customers
Using the above information prepare a December statement of cash flows for Emst 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 investing activities
Cash flows from financing activities
Cash balance, December 1
Cash balance, December 31
$
0
$
$
0
0
$ 3,490
18,650
4,920
8,500
890
700
0
0
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