Exercise 115 Preparing an income statement On October 1 Ebon

Exercise 1-15 Preparing an income statement On October 1, 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. P2 ..$2,000 Cash Accounts receivable. Office supplies Land.... Office equipment Accounts payable. Owner investments $11,360 14,000 3,250 46,000 18,000 8,500 84,000 Cash withdrawals by owner Consulting revenue Rent expense Salaries expense.. Telephone expense Miscellaneous expenses . 14,000 3,550 7,000 760 580 heck Net income, $2,110

Solution

Solution:

Income Statement - Ebony Ernst
For period ended October 31
Particulars	Amount
Consulting Revenue	$14,000.00
Operating Expenses:
Rent Expense	$3,550.00
Salaries Expense	$7,000.00
Telephone Expense	$760.00
Miscellenous Expense	$580.00
Net Income	$2,110.00