Question

g 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 $84,780 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. Retained earnings, October 1 as $0. Cash $ 8,990 Cash dividends $ 2,830 Accounts receivable 16,540 Consulting revenue 16,540 Office supplies 3,930 Rent expense 4,300 Land 45,980 Salaries expense 7,740 Office equipment 18,660 Telephone expense 850 Accounts payable 9,170 Miscellaneous expenses 670 Common stock 84,780 Using the above information prepare an October income statement for the business.

Answer 1

Answer:

Please see details below:

Explanation:

Sales  $16.540  

Salaries Expenses  -$7.740

Miscellaneous Expenses -$5.820  

Net Income       $2.980  

Dividends  2.830  

Retained Earnings $150.

Balance Sheets

Assets  

Cash  $8.990  

Accounts Receivable  $16.540  

Equipment  $22.590  

Land  $45.980  

TOTAL ASSETS   $94.100  

Liabilities  

Accounts Payable    $9.170

TOTAL LIABILITIES   9.170  

Equity  

Common Stock   $84.780  

Retained Earnings  $ 150  

TOTAL EQUITY   84.930