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Chapter 1 Assignment: Accounting in Business i
10
Use the following information for the Exercises below. (Algo)
[The following information applies to the questions displayed below.]
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On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,310
exchange for its common stock to launch the business. On December 31, the company's records show the
and amounts.
10
points
Cash
Accounts receivable
Office supplies
Office equipment
Land
Accounts payable
Common stock
$ 10, 200 Cash dividends
15,200 Consulting revenue
3,550 Rent expense
18,310 Salaries expense
45,990 Telephone expense
8,740 Miscellaneous expenses
84,310
$ 2,340
15,200
3,910
7,350
790
610
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Exercise 1-21 (Algo) Preparing a statement of cash flows LO P2
References
Also assume the following:
a. The owner's initial investment consists of $38,320 cash and $45,990 in land in exchange for its common stoc
b. The company's $18,310 equipment purchase is paid in cash.
c. Cash paid to employees is $2,160. The accounts payable balance of $8,740 consists of the $3,550 office supp
$5,190 in employee salaries yet to be paid.
d. The company's rent expense, telephone expense, and miscellaneous expenses are paid in cash.
e. No cash has yet been collected on the $15,200 consulting revenue earned.
Using the above information prepare a December statement of cash flows for Ernst Consulting. (Cash outflows
by a minus sign.)
ERNST CONSULTING
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