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On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $83,540 in assets in exchange for its common stock to launch
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $83,540 in assets in exchange for its common stock to launch the business. On October 31, the companys records show the following items and amounts. Retained earnings, October 1 as $0.
Cash | $ | 12,650 | Cash dividends | $ | 1,570 | |
Accounts receivable | 13,520 | Consulting revenue | 13,520 | |||
Office supplies | 2,850 | Rent expense | 3,110 | |||
Land | 45,940 | Salaries expense | 6,490 | |||
Office equipment | 17,530 | Telephone expense | 850 | |||
Accounts payable | 8,110 | Miscellaneous expenses | 660 | |||
Common stock | 83,540 | |||||
Using the above information prepare an October income statement for the business.
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