On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,780 in...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,780 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 Cash dividends Consulting revenue Rent expense 18,660 Salaries expense 45,980 Telephone expense 9,170 Miscellaneous expenses 84,780 $ 8,990 16,540 3,930 Exercise 1-21 (Algo) Preparing a statement of cash flows LO P2 $ 2,830 16,540 4,300 7,740 850 670 Also assume the following: a. The owner's initial investment consists of $38,800 cash and $45,980 in land in exchange for its common stock. Exercise 1-21 (Algo) Preparing a statement of cash flows LO P2 Also assume the following: a. The owner's initial investment consists of $38,800 cash and $45,980 in land in exchange for its common stock. b. The company's $18,660 equipment purchase is paid in cash. c. Cash paid to employees is $2,500. The accounts payable balance of $9,170 consists of the $3,930 office supplies purchase and $5,240 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 $16,540 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. ERNST CONSULTING Statement of Cash Flows For Month Ended December 31 activities Cash flows from operatin Cash received from customers Cash paid to employees Cash paid for rent $ < Prev 0 (2,500) (4,300) S 12 of 12 # Score.answer > ERNST CONSULTING Statement of Cash Flows For Month Ended December 31 Cash flows from operating activities Cash received from customers Cash paid to employees Cash paid for rent Cash paid for telephone expenses Cash paid for miscellaneous expenses Net cash provided by operating activities Cash flows from investing activities Cash paid for office equipment Net cash provided by investing activities Cash flows from financing activities Cash investments from shareholders Cash dividends to shareholders $ (2,500) (4,300) (850) (670) 9,170 (18,660) 38,800 (2,830) 0 SO $ 850 (18,660) Net cash provided by operating activities Cash flows from investing activities Cash paid for office equipment Net cash provided by investing activities Cash flows from financing activities Cash investments from shareholders Cash dividends to shareholders Net cash provided by financing activities Net increase in cash Cash balance, December 1 Cash balance, December 31 9,1701 (18,660) 38,800 (2,830) $ $ 850 (18,660) 35,970 0 0 For Month Ended December 31 Cash flows from operating activities Cash received from customers Cash paid to employees Cash paid for rent Cash paid for telephone expenses Cash paid for miscellaneous expenses Net cash provided by operating activities Cash flows from investing activities Cash paid for office equipment Net cash provided by investing activities Cash flows from financing activities Cash investments from shareholders Cash dividends to shareholders X $ < Prev 0 (2,500) (4,300) (850) (670) (18,660) 38,800 (2,830) >> S 12 $ (8,320) (18,660) of 12 www. www www Score answer > On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,780 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 Cash dividends Consulting revenue Rent expense 18,660 Salaries expense 45,980 Telephone expense 9,170 Miscellaneous expenses 84,780 $ 8,990 16,540 3,930 Exercise 1-21 (Algo) Preparing a statement of cash flows LO P2 $ 2,830 16,540 4,300 7,740 850 670 Also assume the following: a. The owner's initial investment consists of $38,800 cash and $45,980 in land in exchange for its common stock. Exercise 1-21 (Algo) Preparing a statement of cash flows LO P2 Also assume the following: a. The owner's initial investment consists of $38,800 cash and $45,980 in land in exchange for its common stock. b. The company's $18,660 equipment purchase is paid in cash. c. Cash paid to employees is $2,500. The accounts payable balance of $9,170 consists of the $3,930 office supplies purchase and $5,240 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 $16,540 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. ERNST CONSULTING Statement of Cash Flows For Month Ended December 31 activities Cash flows from operatin Cash received from customers Cash paid to employees Cash paid for rent $ < Prev 0 (2,500) (4,300) S 12 of 12 # Score.answer > ERNST CONSULTING Statement of Cash Flows For Month Ended December 31 Cash flows from operating activities Cash received from customers Cash paid to employees Cash paid for rent Cash paid for telephone expenses Cash paid for miscellaneous expenses Net cash provided by operating activities Cash flows from investing activities Cash paid for office equipment Net cash provided by investing activities Cash flows from financing activities Cash investments from shareholders Cash dividends to shareholders $ (2,500) (4,300) (850) (670) 9,170 (18,660) 38,800 (2,830) 0 SO $ 850 (18,660) Net cash provided by operating activities Cash flows from investing activities Cash paid for office equipment Net cash provided by investing activities Cash flows from financing activities Cash investments from shareholders Cash dividends to shareholders Net cash provided by financing activities Net increase in cash Cash balance, December 1 Cash balance, December 31 9,1701 (18,660) 38,800 (2,830) $ $ 850 (18,660) 35,970 0 0 For Month Ended December 31 Cash flows from operating activities Cash received from customers Cash paid to employees Cash paid for rent Cash paid for telephone expenses Cash paid for miscellaneous expenses Net cash provided by operating activities Cash flows from investing activities Cash paid for office equipment Net cash provided by investing activities Cash flows from financing activities Cash investments from shareholders Cash dividends to shareholders X $ < Prev 0 (2,500) (4,300) (850) (670) (18,660) 38,800 (2,830) >> S 12 $ (8,320) (18,660) of 12 www. www www Score answer >
Expert Answer:
Answer rating: 100% (QA)
Answer For preparing the balance sheet firstly we should compute profit for the period Profit Loss ... View the full answer
Related Book For
Financial Accounting Information For Decisions
ISBN: 9781260705584
10th Edition
Authors: John J. Wild
Posted Date:
Students also viewed these accounting questions
-
At a given temperature, the elementary reaction AB, in the forward direction, is first order in A with a rate constant of 0.0260 s. The reverse reaction is first order in B and the rate constant is...
-
1. Given f(x)=4x-3x a) (f+g)(x) c) (f-g)(x) e) f(x)g(x) 4 g(x)= and 2x-7, determine the following and state the domains for each b) g(f(x)) d) f(g(x)) f(x) f) 8(x) 2. A golfer hits a ball up in the...
-
If merchandise is sold with credit terms of 3/15,n/30 what is the discount percentage and the number of days available to take advantage of the discount, respectively. Group of answer choices The...
-
Solve the problem. Jake Dowell has total fixed monthly expenses of $1367 and his gross monthly income is $3861. What is his debt-to-income ratio? Round to the nearest percent. ? 3% o 4% o 28% o 35%
-
Referring to Conceptual Example 4-13, suppose the two cats jump from an elevation of 2.5 m with an initial speed of 3.0 m/s. What is the speed of each cat when it is 1.0 m above the ground?
-
The wave function for the first excited state of hydrogen \(n=2, \ell=0\) is \[\psi(r)=\frac{1}{4 \sqrt{2 a_{0}^{3} \pi}}\left(2-\frac{r}{a_{0}}ight) e^{-\frac{r}{2 a_{0}}}\] Take the reduced mass to...
-
4. Students are now suing schools for sexual harassment. The cases raise important issues about the limits of discovery. In a case in Petaluma, California, a girl claimed that she was harassed for...
-
TJs, Inc., makes three nut mixes for sale to grocery chains located in the Southeast. The three mixes, referred to as the Regular Mix, the Deluxe Mix, and the Holiday Mix, are made by mixing...
-
In 2022, LAA Incorporated made a charitable donation of $130,000to the Trevor Project (a qualifying charity). For the year, LAAreported taxable income of $580,000, which included a $130,000charitab 2...
-
Cullumber Co. uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger. Balances related to both the general ledger and the subsidiary ledger for...
-
A vision statement provides a very specific description of what the future will look like for an individual or an organization. imagine that you are attending a leadership meeting and you are asked...
-
The speed limit for vehicles on a road is 100 Km/hr. A drop of 20% in the pitch of a car horn is detected by a policeman when the car passes him. Does the car driver crosses the speed limit....
-
AMCO, Inc. wants to determine the efficiency of its cash management system. The firm has inventory which turns 7.2 times per year, an average payment period of 40 days and an average collection...
-
Using cramer rule, solve the system of linear equation x + y + z = 14, x-6y-2z = 0, 3x + 2y + z = 0.
-
In financial analysis of the financial statement, which of the ratios provides the best measure for the valuation of the firm and the true performance of the company relatively to banks corporations....
-
Give ONE example of a SMART goal that you could use to motivate yourself and explain why it is SMART. this requires you to detail the goal, define SMART, and then explain how your goal is a SMART one.
-
On April 30, the end of the first month of operations, Joplin Company prepared the following income statement, based on the absorption costing concept: Joplin Company Absorption Costing Income...
-
Cable Corporation is 60% owned by Anna and 40% owned by Jim, who are unrelated. It has noncash assets, which it sells to an unrelated purchaser for $100,000 in cash and $900,000 in installment...
-
Barga Co.s net sales for Year 1 and Year 2 are $730,000 and $1,095,000, respectively. Its year-end balances of accounts receivable follow: Year 1, $65,000; and Year 2, $123,000. a. Compute its days...
-
BioWares year-end unadjusted trial balance shows accounts receivable of $17,000 and sales of $150,000. Uncollectibles are estimated to be 2% of sales. Prepare the December 31 year-end adjusting entry...
-
A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 350 units. Ending inventory at January 31 totals 150 units. Required...
-
Consider the game Nim with heaps of tokens. The players alternately remove some tokens from one of the heaps. The player to remove the last token wins. Try to prove part (a) without reference to the...
-
For this exercise, be careful to use only the definitions and not your intuitions that are familiar to you about the symbols \(\leq\) and \(
-
Adaris Group, headquartered in the UK, owns a 70 percent interest in Adaris Malaysia. The acquisition cost was 200 million. At the date of acquisition, 1 January 2012, Adaris Malaysia's book value...
Study smarter with the SolutionInn App