On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $83,010 in assets to launch the business. On December 31, the company's records show the following items and amounts. Cash $930 $ 14,890 Cash withdrawals by owner 12,820 Consulting revenue 12,820 Accounts receivable Office supplies Land 2,290 Rent expense 2,530 45,960 Salaries expense 5,780 16,900 Telephone expense 790 Office equipment Accounts payable Owner investments 610 7,670 Miscellaneous expenses 83,010 Exercise 1-21 (Algo) Preparing a statement of cash flows LO P2 Also assume the following: a. The owner's initial investment consists of $37,050 cash and $45,960 in land. b. The company's $16,900 equipment purchase is paid in cash. c. Cash paid to employees is $400. The accounts payable balance of $7,670 consists of the $2,290 office supplies purchase and $5,380 in employee salaries yet to be paid. d. The company's rent expense, telephone expense, and miscellaneous expenses are paid in cash. e. No cash has yet been collected on the $12,820 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 sign.) ERNST CONSULTING Statement of Cash Flows For Month Ended December 31

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $83,010 in assets to
launch the business. On December 31, the company's records show the following items and amounts.
Cash
$ 14,890 Cash withdrawals by owner
$930
12,820
12,820
Accounts receivable
Office supplies
Land
Consulting revenue
Rent expense
2,290
2,530
45,960 Salaries expense
5,780
16,900 Telephone expense
790
Office equipment
Accounts payable
Owner investments
610
7,670 Miscellaneous expenses
83,010
Exercise 1-21 (Algo) Preparing a statement of cash flows LO P2
Also assume the following:
a. The owner's initial investment consists of $37,050 cash and $45,960 in land.
b. The company's $16,900 equipment purchase is paid in cash.
c. Cash paid to employees is $400. The accounts payable balance of $7,670 consists of the $2,290 office supplies purchase and
$5,380 in employee salaries yet to be paid.
d. The company's rent expense, telephone expense, and miscellaneous expenses are paid in cash.
e. No cash has yet been collected on the $12,820 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 sign.)
ERNST CONSULTING
Statement of Cash Flows
For Month Ended December 31
S
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Transcribed Image Text:On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $83,010 in assets to launch the business. On December 31, the company's records show the following items and amounts. Cash $ 14,890 Cash withdrawals by owner $930 12,820 12,820 Accounts receivable Office supplies Land Consulting revenue Rent expense 2,290 2,530 45,960 Salaries expense 5,780 16,900 Telephone expense 790 Office equipment Accounts payable Owner investments 610 7,670 Miscellaneous expenses 83,010 Exercise 1-21 (Algo) Preparing a statement of cash flows LO P2 Also assume the following: a. The owner's initial investment consists of $37,050 cash and $45,960 in land. b. The company's $16,900 equipment purchase is paid in cash. c. Cash paid to employees is $400. The accounts payable balance of $7,670 consists of the $2,290 office supplies purchase and $5,380 in employee salaries yet to be paid. d. The company's rent expense, telephone expense, and miscellaneous expenses are paid in cash. e. No cash has yet been collected on the $12,820 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 sign.) ERNST CONSULTING Statement of Cash Flows For Month Ended December 31 S LEL < Prev 11 of 11 ** Next >
Required information
Cash flows from operating activities
Cash received from customers
Cash flows from investing activities
Cash flows from financing activities
Cash balance, December 1
Cash balance, December 31
ERNST CONSULTING
Statement of Cash Flows
For Month Ended December 31
$
EA
0
$
$
Prev
0
0
0
0
S
11
Ma
ww
ww
No:
Transcribed Image Text:Required information Cash flows from operating activities Cash received from customers Cash flows from investing activities Cash flows from financing activities Cash balance, December 1 Cash balance, December 31 ERNST CONSULTING Statement of Cash Flows For Month Ended December 31 $ EA 0 $ $ Prev 0 0 0 0 S 11 Ma ww ww No:
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