On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,000 in assets to launch the business. On October 31, the company’s records show the following items and amounts. Use this information to prepare an October income statement for the business. Cash....$11,360Cash withdrawals by owner.........$ 2,000Accounts receivable.14,000Consulting revenue.14,000Office supplies3,250Rent expense...3,550Land......46,000Salaries expense.7,000Office equipment .18,000Telephone expense..760Accounts payable.8,500Miscellaneous expenses.580Owner investments.84,000

Consulting firm’s income statement is no different from Income statement of business except for…

Answered: Cash.... $11,360 Cash withdrawals by…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,000 in assets to launch the business. On October 31, the company’s records show the following items and amounts. Use this information to prepare an October income statement for the business.

Cash....
$11,360
Cash withdrawals by owner.........
$ 2,000
Accounts receivable.
14,000
Consulting revenue.
14,000
Office supplies
3,250
Rent expense...
3,550
Land......
46,000
Salaries expense.
7,000
Office equipment .
18,000
Telephone expense..
760
Accounts payable.
8,500
Miscellaneous expenses.
580
Owner investments.
84,000

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