[The following information applies to the questions displayed below.] On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $85,050 in assets to launch the business. On October 31, the company's records show the following items and amounts. Cash Accounts receivable Office supplies Land Office equipment Accounts payable Owner investments $ 7,950 15,040 4,200 46,010 19,060 9,430 85,050 Cash withdrawals by owner Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses $ 3,070 15,040 4,530 8,090 880 690
[The following information applies to the questions displayed below.] On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $85,050 in assets to launch the business. On October 31, the company's records show the following items and amounts. Cash Accounts receivable Office supplies Land Office equipment Accounts payable Owner investments $ 7,950 15,040 4,200 46,010 19,060 9,430 85,050 Cash withdrawals by owner Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses $ 3,070 15,040 4,530 8,090 880 690
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter4: Completing The Accounting Cycle
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Problem 7E: FedEx Corporation had the following revenue and expense account balances (in millions) for a recent...
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Transcribed Image Text:Using the above information prepare an October statement of owner's equity for Ernst Consulting.
ERNST CONSULTING
Statement of Owner's Equity
$
![Required information
[The following information applies to the questions displayed below.]
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $85,050 in assets to launch
the business. On October 31, the company's records show the following items and amounts.
$ 7,950
15,040
4,200
46,010
19,060
9,430
85,050
Cash withdrawals by owner
Consulting revenue
Rent expense
Salaries expense
Telephone expense
Miscellaneous expenses
$ 3,070
15,040
4,530
8,090
880
690
Cash
Accounts receivable
Office supplies
Land
Office equipment
Accounts payable
Owner investments](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3e6c80bf-75a6-4283-8899-96bf8bd2ddb3%2F42a87770-8c80-4fd4-8fb2-f79f4e68e378%2F2b8qklb_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $85,050 in assets to launch
the business. On October 31, the company's records show the following items and amounts.
$ 7,950
15,040
4,200
46,010
19,060
9,430
85,050
Cash withdrawals by owner
Consulting revenue
Rent expense
Salaries expense
Telephone expense
Miscellaneous expenses
$ 3,070
15,040
4,530
8,090
880
690
Cash
Accounts receivable
Office supplies
Land
Office equipment
Accounts payable
Owner investments
Expert Solution
Introduction
A statement of financial position or balance sheet of a company can be categorized in two sections or parts one is assets and other one liabilities & equity. Equity is a section which states about the capital introduced by the owner at the commencement of business and net income for a year is also added to equity.
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