On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contribute exchange for its common stock to launch the business. On October 31, the company's reco items and amounts. Retained earnings, October 1 as $0. Cash Accounts receivable Office supplies Land Office equipment Accounts payable Common stock $ 8,990 16,540 3,930 45,980 18,660 9,170 84,780 Cash dividends Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses $ 2,830 16,540 4,300 7,740 850 670 Exercise 1-16 Preparing a statement of retained earnings LO P2 Using the above information prepare an October statement of retained earnings for Ernst Consulting. ERNST CONSULTING Statement of Retained Earnings As of October 31 Retained earnings, October 1 $ Add: Net income 0 0 Less: Dividends Retained earnings, October 31 2.830 -2,830 $ 10 11 12 of 15 atv II 1 000 A & $ % On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contribute exchange for its common stock to launch the business. On October 31, the company's reco items and amounts. Retained earnings, October 1 as $0. Cash Accounts receivable Office supplies Land Office equipment Accounts payable Common stock $ 8,990 16,540 3,930 45,980 18,660 9,170 84,780 Cash dividends Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses $ 2,830 16,540 4,300 7,740 850 670 Exercise 1-16 Preparing a statement of retained earnings LO P2 Using the above information prepare an October statement of retained earnings for Ernst Consulting. ERNST CONSULTING Statement of Retained Earnings As of October 31 Retained earnings, October 1 $ Add: Net income 0 0 Less: Dividends Retained earnings, October 31 2.830 -2,830 $ 10 11 12 of 15 atv II 1 000 A & $ %