Question

Un October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $85,160 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 $ 7,520 17,950 4,310 46,000 19,190 9,600 85,160 Cash dividends Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses $ 3,190 17,950 4,720 8,220 900 710

Answer 1

Income Statement Particulars Amount Amount Revenues Consulting revenue $17,950 Total Revenue $ 17,950 Expenses Rent Expenses $ 4,720 Salaries expenses $ 8,220 Telephone Expenses $ 900 Miscellaneous Expenses $ 710 Total Expenses $ 14,550 Net Income $ 3,400 The requirement specifically not given in question, So the Income statement which is in question is correct I hope this solves your doubt. Feel free to comment if you still have any query or need something else. I'll help asap. Do give a thumbs up if you find this helpful.