Help Save Required information Use the following information for exercises 15 to
ID: 2555168 • Letter: H
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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 PrevExplanation / 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
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