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

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[The following information applies to the questions displayed below.] On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $85,050 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. $3,070 17,500 4,530 8,090 880 690 $7,950 Cash dividends Cash Accounts receivable Office supplies Land Office equipment Accounts payable Common Stock 17,500 Consulting revenue 4,200 Rent expense 46,010 Salaries expense 19,060 Telephone expense 9,430 Miscellaneous expenses 85,050 Also assume the following a. The owner's initial investment consists of $39,040 cash and $46,010 in land in exchange for its common stock.. b. The company's $19,060 equipment purchase is paid in cash c. The accounts payable balance of $9,430 consists of the $4,200 office supplies purchase and $5,230 in employee salaries yet to be paid d. The company's rent, telephone, and miscellaneous expenses are paid in cash e. No cash has been collected on the $17,500 consulting fees earned

Explanation / Answer

Solution:

Computation of cash received from customers Particulars Amount Beginning accounts receivables $0.00 Add: Sales $17,500.00 Less: Ending accounts receivables $17,500.00 Cash received from customers $0.00

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