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 $82.780 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. Cash Accounts receivable office supplies Land office equipment Accounts payablo Common stock $15, 760 10, 600 1,960 46,030 16,580 7,250 82,780 Cash dividends Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses 5 640 10, 600 2,270 5, 450 760 580 Using the above information prepare an October 31 balance sheet for Ernst Consulting, Answer is not complete. ERNST CONSULTING Balance Sheet Assets Liabilities Accounts payable $ $ 7,250 Cash Accounts receivable Office supplies Land Office equipment $ 15,760 10,600 1,960 46,030 16,580 Equity Common stock Retained earnings 82,780 900 Total equity Total liabilities and equity 83,680 90,930 Total assets $ 90,930 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 $82,780 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 Cash Accounts receivable oftice mupplies Land office equipment Accounts payable Coordon Stock $15,760 10,600 1,960 46,030 16,500 7,250 82,780 Canh dividendo Consulting revenue Rent expense salaries expense Telephone expense Miscellaneous expenses 640 10,600 2,270 5, 450 760 580 Also assume the following: 2. The owner's initial Investment consists of $36.750 cash and $46,030 in land in exchange for its common stock b. The company's $16,580 equipment purchase is paid in cash c. The accounts payable balance of $7.250 consists of the $1.960 office supplies purchase and $5.290 In employee salarles yet to be paid d. The company's rent, telephone, and miscellaneous expenses are paid in cash e. No cash has been collected on the $10,600 consulting fees eamed Using the above information prepare an October 31 statement of cash flows for Emst Consulting, (Cash outflows should be indicated by o minus sign.) X Answer is not complete. ERNST CONSULTING Statement of Cash Flows $ 0 Cash flows from operating activities Cash received from customers Cash paid to employees Cash paid for rent Cash paid for telephone expenses Cash paid for miscellaneous expenses (160) (2,270) (760) (580) > $ (3,770) Net cash used by operating activities Cash flows from investing activities Cash paid for office equipment (16,580) > (16,580) Net cash used by investing activities Cash flows from financing activities Cash investments from shareholders Cash dividends to shareholders 36,750 (640) VUJI PUIU IMJUI! $ (3,770) Net cash used by operating activities Cash flows from investing activities Cash paid for office equipment (16,580) (16,580) Net cash used by investing activities Cash flows from financing activities Cash investments from shareholders Cash dividends to shareholders 36,750 (640) 36,110 15,760 Net cash provided by financing activities Net increase in cash Cash balance, October 1 Cash balance, October 31 0 $ 15,760
