Question

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 $83,010 in assets to launch the business. On October 31, the company's records show the following items and amounts Cash Accounts receivable Office supplies Land Office equipment Accounts payable Owner investments $.14, 89Θ Cash withdrawals by owner $. 93Θ 12,820 2, 53Θ 5, 78Θ 790 12,820 Consulting revenue 2,29Θ Rent expense 45,960 Salaries expense 16,9ΘΘ Telephone expense 7,67Θ Miscellaneous expenses 83,010

Answer 1

Answer:

ERNST CONSULTING
Balance Sheet
As on October 31
Assets	($)	Liabilities	($)
Land	45,960	Accounts Payable	7,670
Office equipment	16,900
Cash	14,890	Equity
Accounts Receiveble	12,820	Common Stock	83,010
Office supplies	2,290	Retained Earnings (WN 1)	2,180
Total Assets	$ 92,860	Total Liabilities and stockholders equity	$ 92,860

Ernst Consulting Income Statement                              For Month Ended October 31 Amt($) Amt($) Consulting revenue               12,820 Less: Expenditure: Rent expense               2,530 Salaries expense               5,780 Telephone expense                  790 Misc. expense                  610 Total Expenditure                 9,710 Net Income                 3,110 Less: Cash withdrawls                    930 Retained earnings                 2,180