Also assume the following: Required information (The following information applies to the questions displayed below.) a. The owner's initial investment consists of $38,170 cash and $46,030 in la b. The company's $18,170 equipment purchase is paid in cash. c. The accounts payable balance of $8,630 consists of the $3,450 office su paid. d. The company's rent, telephone, and miscellaneous expenses are paid in e. No cash has been collected on the $14,600 consulting revenue earned. Required information [The following information applies to the questions displayed below.] On December 1, Jasmin Ernst organized Ernst Consulting, on December 3, the o exchange for its common stock to launch the business. On December 31, the con items and amounts. On December 1, Jasmin Ernst organized Ernst Consulting; on December 3, the owner contributed $84,200 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. Using the above information prepare a December statement of cash flows f by a minus sign.) Cash Accounts receivable Office supplies Land Office equipment Accounts payable Comon stock $10, 710 14, 600 3,450 46,030 18, 170 8,630 84, 200 Cash dividends Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses $ 2, 180 14, 600 3, 750 7,160 780 600 ERNST CONSULTING Statement of Cash Flows For Month Ended December 31 Cash flows from operating activities Cash received from customers $ Cash Accounts receivable Office supplies Land Office equipment Accounts payable Common stock $10, 710 14, 600 3, 450 ,030 18, 170 8,630 84, 200 Cash dividends Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses $ 2, 180 14, 600 3, 750 7,160 780 600 0 Use the above information to prepare a December 31 balance sheet for Ernst Consultin Using the above information prepare a December statement of retained earnings for Ernst Consulting. ERNST CONSULTING Balance Sheet $ 0 ERNST CONSULTING Statement of Retained Earnings Cash flows from investing activities Retained earnings, December 1 $ 0 0 Cash flows from financing activities 0 $ 0 0 0 Cash balance, December 1 Cash balance, December 31 $ $ 0 $ On December 1, Jasmin Ernst organized Ernst Consulting; on December 3, the owner contributed $84,200 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 Land Office equipment Accounts payable Common stock $10, 710 14, 600 3, 450 46, 030 18, 170 8,630 84, 200 Cash dividends Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses $ 2, 180 14, 600 3, 750 7. 160 780 600 Using the above information prepare a December income statement for the business. ERNST CONSULTING Income Statement
