Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I need a statement of cashflows for Month Ended December 31 for this. but I do not know what to do with a-c Required information
I need a statement of cashflows for Month Ended December 31 for this. but I do not know what to do with a-c
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 $83,850 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 $11,580 13,860 3,140 46,000 17,820 8,400 83,850 Cash dividends Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses $ 1,890 13,860 3,390 6,860 880 690 Also assume the following: a. The owner's initial investment consists of $37,850 cash and $46,000 in land in exchange for its common stock. b. The company's $17,820 equipment purchase is paid in cash. c. The accounts payable balance of $8.400 consists of the $3,140 office supplies purchase and $5,260 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 $13.860 consulting revenue earned. Using the above information prepare a December statement of cash flows for Ernst Consulting. (Cash outflows should be indicatedStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started