Required informationUse the following information for the Exercises below. (Algo)Skip to question [The following information applies to the questions displayed below.]On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $82,890 in assets to launch the business. On December 31, the company’s records show the following items and amounts.Cash$ 15,140Cash withdrawals by owner$ 830Accounts receivable12,720Consulting revenue12,720Office supplies2,110Rent expense2,380Land46,010Salaries expense5,620Office equipment16,780Telephone expense780Accounts payable7,360Miscellaneous expenses600Owner investments82,890 Exercise 1-21 (Algo) Preparing a statement of cash flows LO P2Also assume the following:The owner’s initial investment consists of $36,880 cash and $46,010 in land.The company’s $16,780 equipment purchase is paid in cash.Cash paid to employees is $370. The accounts payable balance of $7,360 consists of the $2,110 office supplies purchase and $5,250 in employee salaries yet to be paid.The company’s rent expense, telephone expense, and miscellaneous expenses are paid in cash.No cash has yet been collected on the $12,720 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.

Cash Flow Statement shows the actual inflow and outflow of cash during the particular month or…

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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)

Skip to question

[The following information applies to the questions displayed below.]

On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $82,890 in assets to launch the business. On December 31, the company’s records show the following items and amounts.

Cash	$ 15,140	Cash withdrawals by owner	$ 830
Accounts receivable	12,720	Consulting revenue	12,720
Office supplies	2,110	Rent expense	2,380
Land	46,010	Salaries expense	5,620
Office equipment	16,780	Telephone expense	780
Accounts payable	7,360	Miscellaneous expenses	600
Owner investments	82,890

Exercise 1-21 (Algo) Preparing a statement of cash flows LO P2

Also assume the following:

The owner’s initial investment consists of $36,880 cash and $46,010 in land.
The company’s $16,780 equipment purchase is paid in cash.
Cash paid to employees is $370. The accounts payable balance of $7,360 consists of the $2,110 office supplies purchase and $5,250 in employee salaries yet to be paid.
The company’s rent expense, telephone expense, and miscellaneous expenses are paid in cash.
No cash has yet been collected on the $12,720 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.

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