[The following information applies to the questions displayed below.JOn December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,000 in assets in exchange for its common stock to launch the business. On December 31, the companys records show the following items and amounts.Cash$ 11,360Cash dividends$ 2,000Accounts receivable 14,000Consulting revenue 14, 000Office supplies3, 250Rent expense3, 550Office equipment 18,000Salaries expense7,000Land46,000 Telephone expense760Accounts payable8, 500Miscellaneous expenses580 Common stock84,000 Using the above information prepare a December income statement for the business

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Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is