Required information [The following information applies to the questions displayed below.] On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,000 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 Accounts receivable office supplies office equipment Land Accounts payable Common stock $ 11,360 Cash dividends 14,000 Consulting revenue Rent expense 3,250 18,000 Salaries expense 46,000 Telephone expense 8,500 Miscellaneous expenses 84,000 $ 2,000 14,000 3,550 7,000 760 580 Also assume the following: a. The owner's initial investment consists of $38,000 cash and $46,000 in land in exchange for its common stock. b. The company's $18,000 equipment purchase is paid in cash. c. Cash paid to employees is $1,750. The accounts payable balance of $8,500 consists of the $3,250 office supplies purchase an $5,250 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 $14,000 consulting revenue earned. ERNST CONSULTING Using the above information prepare a December statement of cash flows for Ernst Consulting. Note: Cash outflows should be indicated by a minus sign.
Required information [The following information applies to the questions displayed below.] On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,000 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 Accounts receivable office supplies office equipment Land Accounts payable Common stock $ 11,360 Cash dividends 14,000 Consulting revenue Rent expense 3,250 18,000 Salaries expense 46,000 Telephone expense 8,500 Miscellaneous expenses 84,000 $ 2,000 14,000 3,550 7,000 760 580 Also assume the following: a. The owner's initial investment consists of $38,000 cash and $46,000 in land in exchange for its common stock. b. The company's $18,000 equipment purchase is paid in cash. c. Cash paid to employees is $1,750. The accounts payable balance of $8,500 consists of the $3,250 office supplies purchase an $5,250 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 $14,000 consulting revenue earned. ERNST CONSULTING Using the above information prepare a December statement of cash flows for Ernst Consulting. Note: Cash outflows should be indicated by a minus sign.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,000 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
Accounts receivable
office supplies
office equipment
Land
Accounts payable
Common stock
$ 11,360 Cash dividends
14,000
3,250
18,000
Consulting revenue
Rent expense
Salaries expense
46,000 Telephone expense
8,500 Miscellaneous expenses
84,000
Cash flows from operating activities
Cash received from customers
Also assume the following:
a. The owner's initial investment consists of $38,000 cash and $46,000 in land in exchange for its common stock.
b. The company's $18,000 equipment purchase is paid in cash.
c. Cash paid to employees is $1,750. The accounts payable balance of $8,500 consists of the $3,250 office supplies purchase and
$5,250 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 $14,000 consulting revenue earned.
ERNST CONSULTING
Statement of Cash Flows
For Month Ended December 31
Using the above information prepare a December statement of cash flows for Ernst Consulting.
Note: Cash outflows should be indicated by a minus sign.
$ 2,000
14,000
$
3,550
7,000
760
580
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8fa072c0-a0c4-4988-9688-edbe18b8bc58%2F112c8f11-8e88-405a-9f50-16ad2fa64e2a%2Fm2xow7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,000 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
Accounts receivable
office supplies
office equipment
Land
Accounts payable
Common stock
$ 11,360 Cash dividends
14,000
3,250
18,000
Consulting revenue
Rent expense
Salaries expense
46,000 Telephone expense
8,500 Miscellaneous expenses
84,000
Cash flows from operating activities
Cash received from customers
Also assume the following:
a. The owner's initial investment consists of $38,000 cash and $46,000 in land in exchange for its common stock.
b. The company's $18,000 equipment purchase is paid in cash.
c. Cash paid to employees is $1,750. The accounts payable balance of $8,500 consists of the $3,250 office supplies purchase and
$5,250 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 $14,000 consulting revenue earned.
ERNST CONSULTING
Statement of Cash Flows
For Month Ended December 31
Using the above information prepare a December statement of cash flows for Ernst Consulting.
Note: Cash outflows should be indicated by a minus sign.
$ 2,000
14,000
$
3,550
7,000
760
580
0
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