Reference no: EM132558174

Question - On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,920 in assets to launch the business. On October 31, the company's records show the following items and amounts.

Cash $8,450 Cash withdrawals by owner $2,930 Accounts receivable 14,910 Consulting revenue 14,910 Office supplies 4,080 Rent expense 4,420 Land 46,020 Salaries expense 7,900 Office equipment 18,860 Telephone expense 860 Accounts payable 9,280 Miscellaneous expenses 680 Owner investments 84,920

-Using the above information make a October income statement for the business.

-Using the above information make a October statement of owner's equity for Ernst Consulting.

-Using the above information make a October 31 balance sheet for Ernst Consulting.

-Also assume the following:

1. The owner's initial investment consists of $38,900 cash and $46,020 in land.

2. The company's $18,860 equipment purchase is paid in cash.

3. The accounts payable balance of $9,280 consists of the $4,080 office supplies purchase and $5,200 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 $14,910 consulting fees earned.

Using the above information make a October 31 statement of cash flows for Ernst Consulting. (Cash outflows should be indicated by a minus sign.)