Question

Help 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 $84,000 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 $11,360 14,000 3,250 46,000 18,000 8,500 84,000 Cash dividends Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses $ 2,000 14.000 3,550 7,000 760 580 Using the above information prepare an October income statement for the business, ERNST CONSULTING Income Statement 3 4 5 of 10 !!! Next > < Prev O earch

Answer 1

Answer
ERNST CONSULTING
Income Statement
For Month Ended October 31
Particular	$	$
Consulting revenue	$     14,000
Total revenue		$       14,000
Less : Operating Expenses
Salaries expense	$       7,000
Rent expense	$       3,550
Telephone expense	$          760
Miscellaneous expenses	$          580	$       11,890
Net income		$         2,110