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Help Save Required information Use the following information for exercises 15 to

ID: 2555168 • Letter: H

Question

Help Save Required information Use the following information for exercises 15 to 18 LO P2 The following information applies to the questions displayed below] On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $83,540 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. 1,570 12,800 3,110 6,490 850 660 Cash 12,800 Consulting revenue office supplies Land office equipment Accounts payable Common Stock 2,850 Rent expense 45,940 Salaries expense 17,530 Telephone expense 8,110 Miscellaneous expenses 83,540 Exercise 1-17 Preparing a balance sheet LO P2 Using the above information prepare an October 31 balance sheet for Emst Consulting ERNST CONSULTING Prev

Explanation / Answer

Balance sheet:

Assets

Liabilities

Cash

12,650

Accounts payable

8,110

Accounts receivable

12,800

Equity

Office supplies

2,850

Common stock

83,540

Office equipment

17,530

Retained earnings

120

Land

45,940

Total assets

91,770

Total liabilities and equity

91,770

?

Working:

Revenue

Consulting fees earned

12,800

Total revenue

Expenses

Salaries

6490

Rent

3110

Telephone

850

Miscellaneous

660

11110

Net income

1,690

Less: Dividend

1570

Retained earnings

120

?

?

Assets

Liabilities

Cash

12,650

Accounts payable

8,110

Accounts receivable

12,800

Equity

Office supplies

2,850

Common stock

83,540

Office equipment

17,530

Retained earnings

120

Land

45,940

Total assets

91,770

Total liabilities and equity

91,770