Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information (The following information applies to the questions displayed below.) On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed

image text in transcribed
image text in transcribed
Required information (The following information applies to the questions displayed below.) On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,000 in assets in exchange for its common stock to launch the business. On October 31, the company's records show the following items and amounts. Retained earnings, October 1 as $0. Cash Accounts receivable Office supplies Land Office equipment Accounts payable Common stock $11,360 14,000 3,250 46,000 18,000 8,500 84,000 Cash dividends Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses $ 2,000 14,000 3,550 7,000 760 580 5 Using the above information prepare an October income statement for the business. 1 of 3 ERNST CONSULTING Income Statement Revenues Consulting revenue 14,000 eBook Hint Total revenues $ 14,000 Print ferences Rent expense Salaries expense Telephone expense Miscellaneous expenses 3,550 7,000 760 580 Total expenses Net income 11,890 2.110 $ BB

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

Fundamental Financial Accounting Concepts Paperback By Edmonds Thomas P O

Authors: Thomas P. Edmonds, Christopher Edmonds, Mark A. Edmonds, Jennifer Edmonds, Philip R. Olds

11th Edition

9781264266234, 1264266235

More Books

Students also viewed these Accounting questions

Question

107 MA ammeter 56 resistor ? V voltmeter

Answered: 1 week ago

Question

Generally If Drug A is an inducer of Drug B , Drug B levels will

Answered: 1 week ago

Question

Define the goals of persuasive speaking

Answered: 1 week ago