On December 1, Jasmin Ernst organized Ernst Consulting. On December 3 , the owner contributed...
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On December 1, Jasmin Ernst organized Ernst Consulting. On December 3 , the owner contributed $84,200 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. Using the above Information prepare a December Income statement for the business. Using the above Information prepare a December statement of retained earnings for Ernst Consulting. Hint: Retained Earnings on December 1 was $0. Use the above Information to prepare a December 31 balance sheet for Ernst Consulting. a. The owner's initial Investment consists of $38,170 cash and $46,030 in land in exchange for its common stock. b. The company's $18,170 equipment purchase is pald in cash. c. Cash pald to employees is $1,980. The accounts payable balance of $8,630 consists of the $3,450 office supplies purchase and $5,180 in employee salarles yet to be pald. d. The company's rent expense, telephone expense, and miscellaneous expenses are paid In cash. e. No cash has yet been collected on the $14,600 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 slgn.)
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