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I know its a lot but I'd really appreciate it if you could answer it all! Required information [The following information applies to the questions
I know its a lot but I'd really appreciate it if you could answer it all!
Required information [The following information applies to the questions displayed below] On December 1, Jasmin Ernst organized Ernst Consulting; on December 3, the owner contributed $82,890 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 $ 15,140 Cash dividends. 12,720 Consulting revenue 2,110 Rent expense 46,010 Salaries expense 16,780 Telephone expense 7,360 Miscellaneous expenses 82,890 $830 12,720 2,380 5,620 780 600 Using the above information prepare a December income statement for the business. ERNST CONSULTING Income Statement 0 Using the above information prepare a December statement of retained earnings for Ernst Consulting. ERNST CONSULTING Statement of Retained Earnings Retained earnings, December 1 $ $ 0 0 0 Use the above information to prepare a December 31 balance sheet for Ernst Consulting. ERNST CONSULTING Balance Sheet Also assume the following: a. The owner's initial investment consists of $36,880 cash and $46,010 in land in exchange for its common stock. b. The company's $16,780 equipment purchase is paid in cash. c. The accounts payable balance of $7,360 consists of the $2,110 office supplies purchase and $5,250 in 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 $12,720 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 Cash flows from operating activities Cash received from customers Cash flows from investing activities Cash flows from financing activities Cash balance, December 11 Cash balance, December 31 $ 0 Step by Step Solution
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