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 $82,890
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.
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|
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Cash
|
$
|
15,140
|
|
Cash dividends
|
$
|
830
|
|
Accounts receivable
|
|
10,500
|
|
Consulting revenue
|
|
10,500
|
|
Office supplies
|
|
2,110
|
|
Rent expense
|
|
2,380
|
|
Land
|
|
46,010
|
|
Salaries expense
|
|
5,620
|
|
Office equipment
|
|
16,780
|
|
Telephone expense
|
|
780
|
|
Accounts payable
|
|
7,360
|
|
Miscellaneous expenses
|
|
600
|
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Common Stock
|
|
82,890
|
|
|
|
|
|
|
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Exercise 1-17 Preparing a balance sheet LO P2
Using the above information prepare an October 31 balance sheet for Ernst Consulting.|
ERNST CONSULTING
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Balance Sheet
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|||
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As of October 31
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|||
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Assets
|
Liabilities
|
||
|
Cash
|
$15,140
|
Accounts payable
|
$7,360
|
|
Accounts receivable
|
10,500
|
||
|
Office supplies
|
2,110
|
Equity
|
|
|
Office equipment
|
16,780
|
Common stock
|
82,890
|
|
Land
|
46,010
|
Retained earnings
|
290
|
|
Total equity
|
83,180
|
||
|
Total assets
|
$90,540
|
Total liabilities and equity
|
$90,540
|
