Principles of Finan. Accounting, Chapter 1-17 (Loose)
22nd Edition
ISBN: 9780077632984
Author: Wild
Publisher: MCG
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Textbook Question
Chapter 1, Problem 15E
Preparing an income statement
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,000 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. Use this information to prepare an October income statement for the business.
Cash.................................. | $11,360 | Cash dividends........................... | $ 2,000 |
Accounts receivable............ | 14,000 | Consulting revenue..................... | 14,000 |
Office supplies................ | 3,250 | Rent expense............................... | 3,550 |
Land.................................. | 46,000 | Salaries expense......................... | 7,000 |
Office equipment.............. | 18,000 | Telephone expense................... | 760 |
Accounts payable.............. | 8,500 | Miscellaneous expenses............... | 580 |
Common stock................ | 84,000 |
Check Net income $2,110
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Principles of Finan. Accounting, Chapter 1-17 (Loose)
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