On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,000 in assets to launch the business. 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..... $11,360 Cash withdrawals by owner.... $ 2,000 Accounts receivable. 14,000 Consulting revenue.. 14,000 Office supplies 3,250 Rent expense.. Salaries expense.. 3,550 Land..... 46,000 7,000 Office equipment 18,000 Telephone expense. 760 Accounts payable. Owner investments.. 8,500 Miscellaneous expenses. 580 84,000

Question
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,000 in
assets to launch the business. 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.....
$11,360
Cash withdrawals by owner....
$ 2,000
Accounts receivable.
14,000
Consulting revenue..
14,000
Office supplies
3,250
Rent expense..
Salaries expense..
3,550
Land.....
46,000
7,000
Office equipment
18,000
Telephone expense.
760
Accounts payable.
Owner investments..
8,500
Miscellaneous expenses.
580
84,000

Image Transcription

On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,000 in assets to launch the business. 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..... $11,360 Cash withdrawals by owner.... $ 2,000 Accounts receivable. 14,000 Consulting revenue.. 14,000 Office supplies 3,250 Rent expense.. Salaries expense.. 3,550 Land..... 46,000 7,000 Office equipment 18,000 Telephone expense. 760 Accounts payable. Owner investments.. 8,500 Miscellaneous expenses. 580 84,000

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