On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $85,360 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 $ 7,010 Cash dividends $ 3,390 Accounts receivable 18,350 Consulting revenue 18,350 Office supplies 4,480 Rent expense 4,820 Office equipment 19,360 Salaries expense 8,370 Land 46,040 Telephone expense 910 Accounts payable 9,740 Miscellaneous expenses 720 Common stock 85,360 Exercise 1-18 (Algo) Preparing an income statement LO P2 Using the above information prepare a December income statement for the business.

On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $85,360 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 $ 7,010 Cash dividends $ 3,390 Accounts receivable 18,350 Consulting revenue 18,350 Office supplies 4,480 Rent expense 4,820 Office equipment 19,360 Salaries expense 8,370 Land 46,040 Telephone expense 910 Accounts payable 9,740 Miscellaneous expenses 720 Common stock 85,360 Exercise 1-18 (Algo) Preparing an income statement LO P2 Using the above information prepare a December income statement for the business.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 1EA: Provide journal entries to record each of the following transactions. For each, identify whether the...

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Use the following information for the Exercises below. (Algo)

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[The following information applies to the questions displayed below.]

On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $85,360 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	$ 7,010	Cash dividends	$ 3,390
Accounts receivable	18,350	Consulting revenue	18,350
Office supplies	4,480	Rent expense	4,820
Office equipment	19,360	Salaries expense	8,370
Land	46,040	Telephone expense	910
Accounts payable	9,740	Miscellaneous expenses	720
Common stock	85,360

Exercise 1-18 (Algo) Preparing an income statement LO P2

Using the above information prepare a December income statement for the business.

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