Use the following information for the Exercises below. (Static) [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 3,250 18,000 46,000 8,500 Miscellaneous expenses 84,000 Consulting revenue Rent expense Salaries expense Telephone expense Exercise 1-21 (Static) Preparing a statement of cash flows LO P2 $ 2,000 14,000 3,550 7,000 760 580 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. 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. Using the above information prepare a December statement of cash flows for Ernst Consulting. Note: Cash outflows should be indicated by a minus sign.
Use the following information for the Exercises below. (Static) [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 3,250 18,000 46,000 8,500 Miscellaneous expenses 84,000 Consulting revenue Rent expense Salaries expense Telephone expense Exercise 1-21 (Static) Preparing a statement of cash flows LO P2 $ 2,000 14,000 3,550 7,000 760 580 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. 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. Using the above information prepare a December statement of cash flows for Ernst Consulting. Note: Cash outflows should be indicated by a minus sign.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Use the following information for the Exercises below. (Static)
[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
3,250
18,000
46,000
8,500
84,000
Consulting revenue
Rent expense
Salaries expense
Telephone expense
Miscellaneous expenses
Exercise 1-21 (Static) Preparing a statement of cash flows LO P2
$ 2,000
14,000
3,550
7,000
760
580
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.
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.
Using the above information prepare a December statement of cash flows for Ernst Consulting.
Note: Cash outflows should be indicated by a minus sign.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc3acae65-05d5-4940-8762-2c9a874e450a%2F81c2c85a-d943-4b18-bfe5-2213d1539ca2%2F2mul7on_processed.png&w=3840&q=75)
Transcribed Image Text:Use the following information for the Exercises below. (Static)
[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
3,250
18,000
46,000
8,500
84,000
Consulting revenue
Rent expense
Salaries expense
Telephone expense
Miscellaneous expenses
Exercise 1-21 (Static) Preparing a statement of cash flows LO P2
$ 2,000
14,000
3,550
7,000
760
580
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.
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.
Using the above information prepare a December statement of cash flows for Ernst Consulting.
Note: Cash outflows should be indicated by a minus sign.
Transcribed Image Text:Statement of Cash Flows
For Month Ended December 31
Cash flows from operating activities
Cash received from customers
Cash flows from investing activities
Cash flows from financing activities
Cash balance, December 1
Cash balance, December 31
$
0
$
$
0
0
0
0
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