Answer Happy

Required information Use the following information for exercise 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 $84,000 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 earnings, October 1 as $0. Cashi $11,360 Cash dividends $ 2,000 14,000 Accounts receivable 14,000 Consulting revenue 3,250 Rent expense 3,550 office supplies Land 46,000 Salaries expense 7,000 760 office equipment Accounts payable Common stock 18,000 Telephone expense 8,500 Miscellaneous expenses 84,000 580
Exercise 1-15 Preparing an income statement LO P2 Using the above information prepare an October income statement for the business. Answer is not complete. ERNST CONSULTING Income Statement Revenues Consulting revenue Total revenues Rent expense Salaries expense Telephone expense Miscellaneous expenses Total expenses Expenses Net income $ 14,000 3,550 7,000 760 580 • $ 14,000 11,890 2,110