Exercise 1-17 Preparing a balance sheet LO P2

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.  

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
Common Stock		82,890

Exercise 1-17 Preparing a balance sheet LO P2

Using the above information prepare an October 31 balance sheet for Ernst Consulting.

ERNST CONSULTING
Balance Sheet
As of October 31
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