Required information Use the following information for exercise 18 to 21 LO P2 (Algo) [The following information applies to the questions displayed below) On December 1, Jasmin Ernst organized Ernst Consulting; on December 3, the owner contributed $83,390 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 Land Office equipment Accounts payable Common stock $13, 210 13,320 2,720 45,910 17,350 7,970 83, 390 Cash dividends Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses $ 1,460 13,320 2,950 6,298 830 640 Exercise 1-18 (Algo) Preparing an income statement LO P2 Using the above information prepare a December income statement for the business BBB Exercise 1-18 (Aigo) Preparing an income statement LU PZ Using the above information prepare a December income statement for the business. ERNST CONSULTING Income Statement Revenues Consulting revenue Expenses Rent expense Salaries expense Telephone expense Miscellaneous expenses Exercise 1-19 (Algo) Preparing a statement of retained earnings LO P2 Using the above information prepare a December statement of retained earnings for Ernst Consul ERNST CONSULTING Statement of Retained Earnings Retained earnings, December 1 $ 0 $ 0 S E Use the above information to prepare a December 31 balance sheet for Ernst Consulting. ERNST CONSULTING Balance Sheet 0 $ $ 0 $ 0 Exercise 1-21 (Algo) Preparing a statement of cash flows LO P2 also assume the following: a. The owner's initial investment consists of $37,480 cash and $45,910 in land in exchange for its common stock b. The company's $17,350 equipment purchase is paid in cash. c. The accounts payable balance of $7,970 consists of the $2,720 office supplies purchase and $5,250 in employee salaries 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 $13,320 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 Flows For Month Ended December 31 + O Required information For Month Ended December 31 Cash flows from operating activities Cash received from customers $ 0 0 Cash flows from investing activities S 0 Cash flows from financing activities 0 Cash balance, December 1