Exercise 1 15 page 38

Exercise 1�\15 page 38

1 �\ 15

On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed

$84,000 cash. On October 31, the company's records show the following items and amounts. Use this information

to prepare an October income statement for the business.

Cash

Accounts receivable

Office supplies

Land

Office equipment

Accounts payable

Owner investments

$11,360

14,000

3,250

46,000

18,000

8,500

84,000

Owner withdrawals

Consulting fees earned

Rent expense

Salaries expense

Telephone expense

Miscellaneous expenses

$2,000

14,000

3,550

7,000

760

580

Ernst Consulting

Income Statement

For Month Ended October 31

Revenues:

Consulting fees earned

Expenses:

Rent expense

Salaries expense

Telephone expense

Miscellaneous expenses

Total expenses

Net income (loss)

Exercise 1�\15 page 38

$ 14,000

$

3,550

7,000

760

580

11,890

$ 2,110

To Statement of

Owner��s Equity

1 �\ 16

Exercise 1�\16 page 38

1 �\ 18

On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed

$84,000 cash. On October 31, the company's records show the following items and amounts. Use this information

to prepare an October statement of owner��s equity for Ernst Consulting.

Cash

Accounts receivable

Office supplies

Land

Office equipment

Accounts payable

Owner investments

From Income Statement

$11,360

14,000

3,250

46,000

18,000

8,500

84,000

Owner withdrawals

Consulting fees earned

Rent expense

Salaries expense

Telephone expense

Miscellaneous expenses

Ernst Consulting

Statement of Owner's Equity

For Month Ended October 31

E. Ernst, Capital, October 1

Add:

Investment by owner

Net income

$

$2,000

14,000

3,550

7,000

760

580

84,000

Less:

Withdrawals by owner

Net loss

E. Ernst, Capital, October 31

Exercise 1�\16 page 38

1 �\ 19

On October 1, Ebony Ernst organized Ernst Consulting, a new consulting firm; on October 3, the owner contributed

$84,000 cash. On October 31, the company's records show the following items and amounts. Use this information

to prepare an October statement of owner��s equity for Ernst Consulting.

Cash

Accounts receivable

Office supplies

Land

Office equipment

Accounts payable

Owner investments

$11,360

14,000

3,250

46,000

18,000

8,500

84,000

Owner withdrawals

Consulting fees earned

Rent expense

Salaries expense

Telephone expense

Miscellaneous expenses

$2,000

14,000

3,550

7,000

760

580

Ernst Consulting

Income Statement

For Month Ended October 31

Revenues:

Consulting fees earned

Expenses:

Rent expense

Salaries expense

Telephone expense

Miscellaneous expenses

Total expenses

Net income (loss)

Exercise 1�\16 page 38

$ 14,000

$

3,550

7,000

760

580

11,890

$ 2,110

1 �\ 20

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