statement of cash flows
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![11
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 $84,000 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.
Cash
Accounts receivable
Office supplies
Office equipment
Land
Accounts payable
Common stock
$ 11,360 Cash dividends
14,000 Consulting revenue
3,250 Rent expense
18,000 Salaries expense
46,000 Telephone expense
8,500 Miscellaneous expenses
84,000
Also assume the following:
a. The owner's initial investment consists of $38,000 cash and $46,000 in land in exchange for its
common stock.
Cash flows from operating activities
Cash received from customers
b. The company's $18,000 equipment purchase is paid in cash.
c. Cash paid to employees is $1,750. The accounts payable balance of $8.500 consists of the
$3,250 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 $14,000 consulting revenue earned.
Cash paid for miscellaneous expenses
Cash paid to employees
Using the above information prepare a December statement of cash flows for Ernst Consulting.
(Cash outflows should be indicated by a minus sign.)
ERNST CONSULTING
Statement of Cash Flows
For Month Ended December 31
Cash paid for rent
Cash paid for telephone expenses
Answer is not complete.
$ 2,000
14,000
3,550
7,000
0000
760
580
S
0
(580)
(1,750)
(3.550)
(760)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe48b91ac-d128-464b-9c87-7d3008e2bbca%2F4f1729d0-cde1-4b63-be4f-a8a77befe868%2Fjmnql1w_processed.jpeg&w=3840&q=75)
Transcribed Image Text:11
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 $84,000 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.
Cash
Accounts receivable
Office supplies
Office equipment
Land
Accounts payable
Common stock
$ 11,360 Cash dividends
14,000 Consulting revenue
3,250 Rent expense
18,000 Salaries expense
46,000 Telephone expense
8,500 Miscellaneous expenses
84,000
Also assume the following:
a. The owner's initial investment consists of $38,000 cash and $46,000 in land in exchange for its
common stock.
Cash flows from operating activities
Cash received from customers
b. The company's $18,000 equipment purchase is paid in cash.
c. Cash paid to employees is $1,750. The accounts payable balance of $8.500 consists of the
$3,250 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 $14,000 consulting revenue earned.
Cash paid for miscellaneous expenses
Cash paid to employees
Using the above information prepare a December statement of cash flows for Ernst Consulting.
(Cash outflows should be indicated by a minus sign.)
ERNST CONSULTING
Statement of Cash Flows
For Month Ended December 31
Cash paid for rent
Cash paid for telephone expenses
Answer is not complete.
$ 2,000
14,000
3,550
7,000
0000
760
580
S
0
(580)
(1,750)
(3.550)
(760)
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