The following information applies to the questions displayed

The following information applies to the questions displayed below) On October 1, Ebony Ernst organized Emst Consulting: on October 3, the owner contributed $85,460 in assets to launch the business. On October 31, the company\'s records show the following items and amounts Cash Accounts receivable15,520 Consulting fees earned Office supplies Land Office equipment Accounts payable Owner investments $ 6650 Cash withdrawals by owner 3,490 15,520 4,920 8,500 890 700 4,640 Rent expense 46,000 Salaries expense 9,560 Telephone expense 9,890 Miscellaneous expenses 85,460 value: 15.00 points Using the above information prepare an October income statement for the business. ERNST CONSULTING Income Statement

Solution

ERNST Consulting October Income Statement Particulars Amount Consultancy Fees earned 15520 Less Rent Expense 4920 Telephone Expense 890 Miscelleneous Expense 700 Office Supplies 4640 Salaries Expense 8500 Total Expense 19650 Net Profit/(Loss) -4130 Owners Equity Particulars Amount Owners Investment 85460 Loss -4130 Cash Withdrawal -3490 Total Owners Equity 77840 Balance Sheet Laibilities Amount Assets Amount Owner Investment 85460 Accounts Receivable 15520 Accounts Payable 9890 Land 46000 Office Equipment 19560 Cash 6650 Owner Cash Withdrawal 3490 Loss 4130 Total 95350 Total 95350