! 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 $84,000 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 $ 11,360 Cash dividends $ 2,000 Accounts receivable 14,000 Consulting revenue 14,000 office supplies 3,250 Rent expense 3,550 Office equipment 18,000 Salaries expense 7,000 Land 46,000 Telephone expense 760 Accounts payable 8,500 Miscellaneous expenses 580 Common stock 84,000 Using the above information prepare a December statement of retained earnings for Ernst Consulting. Hint Retained Earnings on December 1 was $0. Answer is not complete. ERNST CONSULTING Statement of Retained Earnings 0 Retained earnings, December 1 Add: Net Income 0 Less: Dividends 2,000 -2,000 Retained earnings, December 31 $ 0 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 $84,000 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 $ 11,360 Cash dividends 14,000 Consulting revenue 3,250 Rent expense 18,000 Salaries expense 46,000 Telephone expense 8,500 Miscellaneous expenses 84,000 $ 2,800 14,000 3,550 7,000 760 582 Use the above information to prepare a December 31 balance sheet for Ernst Consulting. Answer is not complete. ERNST CONSULTING Balance Sheet Assets Liabilities Cash IS 8,500 8,500 Accounts receivable Office supplies Office equipment Land $ 11,360 Accounts payable 14,000 3,250 18,000 46,000 Common stock Retained earnings O 84,000 2,000 X Total equity Total liabilities and equity 86,000 94,500 Total assets $ 92,610 $ O Required information The following information applies to the questions displayed below) On December 1, Jasmin Emst organized Ernst Consulting On December 3, the owner contributed $84,000 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 $ 11,360 Cash dividends 14,000 Consulting revenue 3,250 Rent expense 18,000 Salaries expense 46,000 Telephone expense 8,500 Miscellaneous expenses 84,000 $ 2,000 14,000 3,550 7.ee 760 580 Also assume the following: a. The owner's initial investment consists of $38,000 cash and $46,000 in land in exchange for its common stock b. The company's $18,000 equipment purchase is paid in cash. c. Cash paid to employees is $1750. The accounts payable balance of $8,500 consists of the $3.250 office supplies purchase and $5,250 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 $14,000 consulting revenue earned. Using the above information prepare a December statement of cash flows for Ernst Consulting (Cash outflows should be indicated by a minus sign.) ERNST CONSULTING Statement of Cash Flow For Month Ended December 31 Cash flows from operating activities Cash received from customers $ O $ 0 Cash flows from investing activities . Cash flows from financing activities 0 Cash balance, December 1 Cash balance, December 31 $ 0
