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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
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 $85,050 in assets in exchange for its common stock to launch the business. On October 31, the companys records show the following items and amounts.
Cash | $ | 7,950 | Cash dividends | $ | 3,070 | |
Accounts receivable | 17,500 | Consulting revenue | 17,500 | |||
Office supplies | 4,200 | Rent expense | 4,530 | |||
Land | 46,010 | Salaries expense | 8,090 | |||
Office equipment | 19,060 | Telephone expense | 880 | |||
Accounts payable | 9,430 | Miscellaneous expenses | 690 | |||
Common Stock | 85,050 | |||||
Using the above information prepare an October income statement for the business.
ERNST CONSULTING Income Statement Assets Accounts payable Accounts payable Accounts payable Accounts payable Accounts payable Accounts payable Accounts payable Accounts payable Accounts payable C INet income
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