Exercise 115 Preparing an inco statement P2 On October I Ebo

Exercise 1-15 Preparing an inco statement P2 On October I, 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 Accounts receivable Office supplies.... $11.360 14,000 3.250 Rent expense 3,550 Office equipment ...18,000 ....8,500 84,000 760 580 Check Net ncome, $2,110 Exercise 1-16 Preparing a statement of owner\'s equ Use the information in Exercise 1-15 to prepare an October statement of owner\'s equity for Ernst Consulting. Exercise 1-17 Preparing a balance heet P2 Use the information in Exercise 1-15 (if completed, you can also use prepare an October 31 balance sheet for Ernst Consulting. your solution to Exercise 1-16) to

Solution

Income Statement Revenue Consulting fees earned             14,000 Total Revenue                 14,000 Expenses Rent                3,550 Salaries                7,000 Telephone                   760 Miscellaneous                   580 Total Expense                 11,890 Net Operating Income                   2,110 Statement of Retained Earnings Opening Retained Earnings Add: Net Income            2,110 Less: Withdraw            2,000 Closing Retained Earnings                110 Balance Sheet Assets $ Liabilities and Equity $ Cash      11,360 Liabilities Accounts Receivable      14,000 Accounts payable            8,500 Office Supplies         3,250 Equity Office Equipment      18,000 Common Stock          84,000 Land      46,000 Retained Earnings                110 Total      92,610 Total          92,610