### Understanding Balance Sheets: Example from Ernst ConsultingA balance sheet provides a snapshot of a company’s financial standing at a particular point in time. Below is a December 31 balance sheet for Ernst Consulting, showcasing the structure and elements typically found in such financial documents.#### ERNST CONSULTING**Balance Sheet**##### Assets- **Cash**: $9,390- **Accounts Receivable**: $16,020- **Office Supplies**: $3,830- **Land**: $45,980- **Office Equipment**: $18,550**Total Assets**: $93,770##### Liabilities- **Accounts Payable**: $9,060**Total Liabilities**: $9,060##### Equity- **Common Stock**: $84,580- **Retained Earnings**: $130**Total Equity**: $84,710##### Total Liabilities and Equity: $93,770### Explanation of Key Sections:#### AssetsAssets represent resources owned by the company which are expected to provide future economic benefits. They are divided into various categories based on their nature and usage within the company. - **Cash**: Liquid funds available.- **Accounts Receivable**: Money owed to the company by clients.- **Office Supplies**: Consumable items used within the office.- **Land**: Real estate property owned.- **Office Equipment**: Examples may include computers, furniture, and other essential office tools.#### LiabilitiesLiabilities are obligations the company owes to outside parties. - **Accounts Payable**: Short-term obligations or debts the company needs to settle. #### EquityEquity represents the shareholders’ stake in the company. It is calculated as the residual interest in the assets of the company after deducting liabilities.- **Common Stock**: Capital contributed by shareholders through the purchase of stock.- **Retained Earnings**: Cumulative profits that have been reinvested in the business rather than being paid out as dividends.### Balancing the Equation:In a balanced balance sheet, the sum of liabilities and equity equals total assets. This alignment ensures all financial activities and ownership stakes are properly accounted for. In this example, Ernst Consulting’s total assets ($93,770) are equal to the total of its liabilities and equity ($93,770), confirming the balance sheet is correctly prepared.This balance sheet serves as ### 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 $84,580 in assets in exchange for its common stock to launch the business. On December 31, the company’s records show the following items and amounts.| Category | Amount ($) | Category | Amount ($) ||-------------------------|-------------|---------------------------|-------------|| Cash | 9,390 | Cash dividends | 2,650 || Accounts receivable | 16,020 | Consulting revenue | 16,020 || Office supplies | 3,830 | Rent expense | 4,190 || Office equipment | 18,550 | Salaries expense | 7,570 || Land | 45,980 | Telephone expense | 830 || Accounts payable | 9,060 | Miscellaneous expenses | 650 || Common stock | 84,580 | | |This table summarizes the financial position of Ernst Consulting as of December 31, providing a snapshot of its assets, liabilities, equity, and various income and expense accounts.

The balance sheet is a mirror of the organization's performance and financial position at some…

Answered: se the above information to prepare a…

Business

Accounting

se the above information to prepare a December 31 balance sheet for Ernst Consulting. ERNST CONSULTING Balance Sheet

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter20: Corporations And Partnerships

Section: Chapter Questions

Problem 59P

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! Requlred Informatlon Use the following information for exercise 15 to 18 LO P2 [The following information applies to the questions displayed below.] On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,580 in assets in exchange for its common stock to launch the business. On October 31, the company's records show the following items and amounts. Retained eanings, October 1 as $0. $ 9,390 16,020 3,830 45,980 18,550 9, 060 84, 580 Cash Accounts receivable Office supplies Cash dividends Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses $ 2,650 16,020 4,190 7,570 830 Land office equipment Accounts payable Common stock 650 Exercise 1-16 Preparing a statement of retalned earnings LO P2 Using the above information prepare an October statement of retained earnings for Ernst Consulting. ERNST CONSULTING Statement of Retained Earnings For Month Ended October 31 Retained earnings, October 1 Add: Net income Less:…
Required information Use the following information for exercise 15 to 18 LO P2 [The following information applies to the questions displayed below.] On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,580 in assets in exchange for its common stock to launch the business. On October 31, the company's records show the following items and amounts. Retained earnings, October 1 as $0. $ 9,390 16,020 3,830 45,980 18,550 9,060 84,580 Cash Accounts receivable Office supplies Cash dividends Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses $ 2,650 16,020 4,190 Land Office equipment Accounts payable 7,570 830 650 Common stock Exercise 1-17 Preparing a balance sheet LO P2 Using the above information prepare an October 31 balance sheet for Ernst Consulting. ERNST CONSULTING Balance Sheet Assets Cash Accounts payable Accounts receivable Office supplies Total liabilities Equity Office equipment Common stock Retained…
[The following information applies to the questions displayed below.] On October 1, Ebony Ernst organized Ernst Consulting: on October 3, the owner contributed $84,580 in assets in exchange for its common stock to launch the business. On October 31, the company's records show the following items and amounts. Retained eamings, October 1 as $0. $ 9,390 16,020 3,830 45,980 18,55e 9, 860 84,580 Cash dividends Cash Accounts receivable Office supplies Land Office equipment Accounts payable Common stock $ 2,650 Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses 16,020 4, 190 7,570 830 650 Exercise 1-15 Preparing an Income statement LO P2 Using the above information prepare an October income statement for the business. ERN ST CON SULTING Income Statement
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ces 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 $84,780 in assets in exchange for its common stock to launch the business. On October 31, the company's records show the following items and amounts. Retained earnings, October 1 as $0. Cash Accounts receivable Office supplies Land Office equipment Accounts payable Common stock $ 8,990 16,540 3,930 45,980 18,660 9,170 84,780 Cash dividends Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses ERNST CONSULTING Statement of Retained Earnings Using the above information prepare an October statement of retained earnings for Ernst Consulting. $ 2,830 16,540 4,300 7,740 850 670 S
[The following information applles to the questions displayed below.] On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,580 in assets In exchange for Its common stock to launch the business. On October 31, the company's records show the following Items and amounts. Retalned earnings, October 1 as $0. $ 9,390 16,020 3,83e 45,98e 18,55e 9,e6e 84,580 Cash dividends Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses $ 2,650 16,e20 4,190 7,570 830 Cash Accounts receivable office supplies Land office equipment Accounts payable Common stock 650 Exercise 1-15 Preparing an income statement LO P2 Using the above Information prepare an October Income statement for the business. ERNST CONSULTING Income Statement For Month Ended October 31 Revenues Consulting revenue Expenses Rent expense Salaries expense Telephone expense Miscellaneous expenses Net income
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At the start of the year, the balance on Sara's capital account was $55,689. During the year Sara made drawings of S16,600 and the net profit for the year was $17500. What is the balance on Sara's capital account at the end of the year? OA S56.589 B. $30,069 OC $4,789 O D. $62,189
Preparation of SCE for a Single Proprietorship Instructions: Prepare a Statement of Changes in Equity for the year ended December 31,2020 the using the following account titles listed. You may use any desired business name. Use the space provided for your answer. Drawing ₱168,000 Capital Beginning ₱ 95,000 Additional Investment ₱105,000 Total Asset ₱550,000 Total Liabilities ₱120,000
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