Question

On October 1, Ebony Ernst organized Ernst Consulting: on October 3, the owner contributed $83,660 in assets in exchange for its common stock to launch the business. On October 31, the company's records show the following items and amounts, Retained earnings, October 1 as $0. Cash Accounts receivable Office supplies Land Office equipment Accounts payable Common stock $12,040 13,720 2,990 45,940 17,710 8,230 83,660 Cash dividends Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses $ 1,760 13,720 3,210 6,690 870 680

Answer 1

Corrections to be done:

Enter date of Balance Sheet

Enter Assets in order of liquidity (Optional)

Balance Sheet
As of October 31
Assets		Liabilities
Cash	12040	Accounts Payable	8230
Accounts Receivable	13720
Office Supplies	2990	Total liabilities	8230
Land	45940	Equity
Office Equipment	17710	Common Stock	83660
		Retained Earnings	510
		Total Equity	84170
Total assets	92400	Total Liabilities and Equity	92400

Workings:
Consulting revenue	13720
Less: Expenses
Rent expense	3210
Salaries expense	6690
Telephone expense	870
Miscellaneous expense	680
Total Expenses	11450
Net income	2270
Retained Earnings	510