Chapter 1 Accounting in Business 37 Use the information in Exercise 1-15 Consulting to prepare an October statement of owner's equity for Ernst Exercise 1-16 Preparing a statement of owner's equity P2 Use the information in Exercise 1-15 to prepare an October 31 balance sheet for Ernst Consulting. Hint: Exercise 1-17 The solution to Exercise 1-16 can help Preparing a balance sheet P2 Use the information in Exercise 1-15 to prepare an October 31 statement of cash flows for Ernst Exercise 1-18 Consulting. Assume the following additional information a. The owner's initial investment consists of $38,000 cash and $46,000 in land. b. The company's $18,000 equipment purchase is paid in cash. c. The accounts payable balance of $8,500 consists of the $3,250 office supplies purchase and $5,250 in Preparing a statement of cash flows P2 employee salaries yet to be paid. d. The company's rent, telephone, and miscellaneous expenses are paid in cash. e. No cash has been collected on the $14,000 consulting fees earned. Check Net increase i $11,360 Chapter 1 Accounting in Business 37 Use the information in Exercise 1-15 Consulting to prepare an October statement of owner's equity for Ernst Exercise 1-16 Preparing a statement of owner's equity P2 Use the information in Exercise 1-15 to prepare an October 31 balance sheet for Ernst Consulting. Hint: Exercise 1-17 The solution to Exercise 1-16 can help Preparing a balance sheet P2 Use the information in Exercise 1-15 to prepare an October 31 statement of cash flows for Ernst Exercise 1-18 Consulting. Assume the following additional information a. The owner's initial investment consists of $38,000 cash and $46,000 in land. b. The company's $18,000 equipment purchase is paid in cash. c. The accounts payable balance of $8,500 consists of the $3,250 office supplies purchase and $5,250 in Preparing a statement of cash flows P2 employee salaries yet to be paid. d. The company's rent, telephone, and miscellaneous expenses are paid in cash. e. No cash has been collected on the $14,000 consulting fees earned. Check Net increase i $11,360