On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,580 in assets to launch the business. On October 31, the company's records show the following items and amounts cash $9,390 cash withdrawals by owner $2,650 accounts receivable $14,620 consulting revenue $14,620 office supplies $3,830 rent expense $4,190 land $45,980 salaries expense $7,570 office equipment $18,550 telephone expense $830 accounts payable $9,060 miscellaneous expenses $650 Owner Investments $84,580 Also assume the following: a. The owners initial investment consists of $38,600 cash and $45,980 in land b. The company's $18,550 equipment purchase is paid in cash c. the accounts payable balance of $9,060 consists of the $3,830 office supplies purchase and $5,230 in employee salaries yet to be paid d. the company's rent, telephone and miscellaneous expenses are paid in cash e. No cash has been collected on the $14,620 consulting fees earned Using the above information prepare an October 31 statement of cash flows for Ernst Consulting (cash outflows should be indicated by a minus sign) ERNST CONSULTING Statement of Cash Flows For Month Ended October 31 Cash flows from operating activities Cash received from customers $0 $0 Cash flows from investing activities 0 Cash flows from financing activities 0 Cash balance, October 1 Cash balance, October 31 $0
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,580 in assets to launch the business. On October 31, the company's records show the following items and amounts
cash $9,390 cash withdrawals by owner $2,650
office supplies $3,830 rent expense $4,190
land $45,980 salaries expense $7,570
office equipment $18,550 telephone expense $830
accounts payable $9,060 miscellaneous expenses $650
Owner Investments $84,580
Also assume the following:
a. The owners initial investment consists of $38,600 cash and $45,980 in land
b. The company's $18,550 equipment purchase is paid in cash
c. the accounts payable balance of $9,060 consists of the $3,830 office supplies purchase and $5,230 in employee salaries yet to be paid
d. the company's rent, telephone and miscellaneous expenses are paid in cash
e. No cash has been collected on the $14,620 consulting fees earned
Using the above information prepare an October 31 statement of cash flows for Ernst Consulting (
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