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 >