Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On October 1, Ebony Ernst organized Ernst Consulting, on October 3, the owner contributed $82,780 in assets to launch the business. On October 31, the

image text in transcribed
image text in transcribed
On October 1, Ebony Ernst organized Ernst Consulting, on October 3, the owner contributed $82,780 in assets to launch the business. On October 31, the company's records show the following items and amounts. Cash Accounts receivable office Supplies Land Office equipment Accounts payable Owner Investments $15.760 12,590 1.96 46,30 16,580 7.250 82,70 Cash withdrawals by owner Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses $ 6.00 12,50 2.27 760 5 Alto assume the following 0. The owner's initial investment consists of $36.750 cash and $46,030 in land b. The company's $16,580 equipment purchase is paid in cash c. The accounts payable balance of $7.250 consists of the $1.960 office supplies purchase and $5,290 in employee saares yet to be pald d. The company's rent, telephone, and miscellaneous expenses are paid in cash e. No cash has been collected on the $12,590 consulting fees earned Using the above information prepare an October 31 statement of cash flows for Erst Consulting (Coin outflows should be indicated by a minus sign) ERNST CONSULTINO Statement of Cash Flowe For Month Ended October Cuscones Required information c. The accounts payable balance of $7.250 consists of the $1.960 office supplies purchase and $5.290 in employee salaries yet to be pald d. The company's rent, telephone, and miscellaneous expenses are paid in cash. e. No cash has been collected on the $12,590 consulting fees earned. Using the above information prepare an October 31 statement of cash flows for Ernst Consulting. (Cash outflows should be indicated by a minus sign.) ERNST CONSULTING Statement of Cash Flows For Month Ended October 31 Cash fows from operating activities Cash received from customers S 0 Cash flows from investing activities Cashows from anong activities 0 Com October Cance October 31

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Consolations Of Economics How We Will All Benefit From The New World Order

Authors: Gerard Lyons

1st Edition

0571307795, 9780571307791

More Books

Students also viewed these Accounting questions