Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.) On December 1, Jasmin Ernst organized Ernst Consulting, On December 3, the owner contributed $83,010 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 Office equipment Land Accounts payable Common stock $ 14,090 Cash dividendo 12,820 Consulting revenue 2,290 Rent expenso 16,900 Salaries expense 45,960 Telephone expense 7,670 Miscellaneous expenses 83,010 $ 930 12,820 2,530 5,780 790 610 Exercise 1-18 (Algo) Preparing an income statement LO P2 Using the above information prepare a December income statement for the business. ERNST CONSULTING Income Statement Revenues Consulting revenue 12,820 $ 12,820 Total revenues Expenses Miscellaneous expenses 610 ces Rent expense Salaries expense Telephone expense Total expenses Net income 2,530 5,780 790 9,710 3.110 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 Consulting. Hint: Retained Earnings on December 1 was $0. ERNST CONSULTING Statement of Retained Earning $ Retained earnings, December 1 Add: Net Income 0 3,110 3,110 930 Less: Dividends Retained earnings, December 31 $ 2.180 Exercise 1-20 (Algo) Preparing a balance sheet LO P2 Use the above information to prepare a December 31 balance sheet for Ernst Consulting, ERNST CONSULTING Balance Sheet Assets Liabilities $ 7,670 Cash Land Office equipment Office supplies Accounts receivable 7,670 14,890 Accounts payable 45,960 Rent expense 16,900 2,290 12,820 Common stock Retained earnings Equity 83,010 2,180 85,190 92,860 $ 92,860