[The following information applies to the questions displayed below.]On October 1, Ebony Ernst organized Ernst Consulting: on October 3, the owner contributed $84,580 in assets inexchange for its common stock to launch the business. On October 31, the company's records show the following itemsand amounts. Retained eamings, October 1 as $0.$ 9,39016,0203,83045,98018,55e9, 86084,580Cash dividendsCashAccounts receivableOffice suppliesLandOffice equipmentAccounts payableCommon stock$ 2,650Consulting revenueRent expenseSalaries expenseTelephone expenseMiscellaneous expenses16,0204, 1907,570830650Exercise 1-15 Preparing an Income statement LO P2Using the above information prepare an October income statement for the business.ERN ST CON SULTINGIncome Statement

[The following information applies to the questions displayed below.] On October 1, Ebony Ernst organized Ernst Consulting: on October 3, the owner contributed $84,580 in assets in exchange for its common stock to launch the business. On October 31, the company's records show the following items and amounts. Retained eamings, October 1 as $0. $ 9,390 16,020 3,830 45,980 18,550 9,860 84, 580 Cash dividends $ 2,650 Cash Accounts receivable Office supplies Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses 16.820 4,190 7,570 830 Land Office equipment Accounts payable Common stock 650

[The following information applies to the questions displayed below.] On October 1, Ebony Ernst organized Ernst Consulting: on October 3, the owner contributed $84,580 in assets in exchange for its common stock to launch the business. On October 31, the company's records show the following items and amounts. Retained eamings, October 1 as $0. $ 9,390 16,020 3,830 45,980 18,550 9,860 84, 580 Cash dividends $ 2,650 Cash Accounts receivable Office supplies Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses 16.820 4,190 7,570 830 Land Office equipment Accounts payable Common stock 650

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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The lollowng ihrormation appiles to the questions displayed below.] On October 1, Ebony Ernst organized Ernst Consulting: on October 3, the owner contributed $84,580 in assets in exchange for its common stock to launch the business. On October 31, the company's records show the following items and amounts. Retained eamings, October 1 as $0. $ 9,390 16,020 3,830 45,980 18,550 9,060 84, 580 Cash dividends Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses Cash $ 2,650 16,020 4,190 7,570 Accounts receivable Office supplies Land office equipment Accounts payable Common stock 830 650 Exerclse 1-16 Preparing a statement of retained earnings LO P2 Using the above information prepare an October statement of retained earnings for Ernst Consulting. ERNST CONSULTING Statement of Retained Earnings 2.
[The following information applies to the questions displayed below.] On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,580 in assets in exchange for its common stock to launch the business. On October 31, the company's records show the following items and amounts. Retained eamings, October 1 as $0. $ 9,390 16,020 3,830 45,980 18,550 9,060 84,580 Cash dividends Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses $ 2,650 16,820 4,190 7,570 830 650 Cash Accounts receivable Office supplies Land office equipment Accounts payable Common stock Exercise 1-17 Preparlng a balance sheet LO P2 Using the above information prepare an October 31 balance sheet for Ernst Consulting. ERNST CONSULTING Balance Sheet 2$
Dabin Company purchased a P1,000,000 ordinary life insurance policy for its president. The beneficiary of the life insurance policy is Dabin Company. The policy year and the entity's accounting year coincide. The entity provided the following data for the current year: Cash surrender value, January 1 43,500 Cash surrender value, December 31 Annual advance premium paid January 1 Dividend received July 1 54,000 20,000 3,000 What amount should be reported as life insurance expense for the current year? O 17,000 20,000 6,500 9,500
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The financial statements for Campbell, Inc., and Newton Company for the year ended December 31, 2021, prior to the business combination whereby Campbell acquired Newton, are as follows (in thousands): Campbell Newton Revenues $ 2,600 $ 700 Expenses 1,880 400 Net income $ 720 $ 300 Retained earnings, 1/1 $ 2,400 $ 500 Net income 720 300 Dividends (270 ) 0 Retained earning, 12/31 $ 2,850 $ 800 Cash $ 240 $ 230 Receivables and inventory 1,200 360 Buildings (net) 2,700 650 Equipment (net) 2,100 1,300 Total assets $ 6,240 $ 2,540 Liabilities $ 1,500 $ 720 Common stock 1,080 400 Additional paid-in capital 810 620 Retained earnings 2,850 800 Total liabilities & stockholders' equity $ 6,240 $ 2,540 On December 31, 2021, Campbell obtained a loan for $650 and used the proceeds, along with the transfer of 35…
The trial balances for Wallace Corporation and Au Inc. at December 31, Year 4, just before the transaction described below, were as follows: Current assets Land Other tangible assets Liabilities Common shares Retained earnings, 1/1/Year 4 Revenues Expenses Land Other tangible assets Liabilities On December 31, Year 4, Wallace purchased all of the outstanding shares of Au Inc. by issuing 39,000 common shares with a market value of $25 per share. The carrying amounts of Au Inc.'s assets and liabilities were equal to fair value except for the following: Fair Value $527,000 354,000 339,000 Walla $307,000 627,000 527,000 427,000 227,000 627,000 827,000 647,000 Required: What are the balances for the land, other tangible assets, goodwill, investment in common shares, liabilities, common shares, and revenues after the transaction noted above on: (Leave no cells blank - be certain to enter "0" wherever required. Omit $ sign in your response.) (a) Wallace's separate entity financial statements…
Light Inc. had the following activities during the current year: • Acquired 4,000 shares of Dark Inc. for P5.200,000. • Sold an investment in Lonely Inc. for P7.000,000 when the carrying value was P6.600,000. • Acquired a P10,000,000, 4-year certificate of deposit from a bank. During the year, interest of 175.,000 was paid to Light Inc. • Collected dividends of P240.000 on share dividends. How much should be reported as cash inflows from operating activities?