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$11,360Cash dividends$2,000Accounts receivable14,000Consulting revenue14,000Office supplies3,250Rent expense3,550Land46,000Salaries expense7,000Office equipment18,000Telephone expense760Accounts payable8,500Miscellaneous expenses580Common stock84,000

Also assume the following:

1. The owner's initial investment consists of $38,000 cash and $46,000 in land in exchange for its common stock.
2. The company's $18,000 equipment purchase is paid in cash.
3. 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.
4. The company's rent, telephone, and miscellaneous expenses are paid in cash.
5. No cash has been collected on the $14,000 consulting fees earned.