On October 1, Ebony Ernst organized Ernst Consulting; On October 3, the owner contributed $84,780 in assets to launch the business. On October 31, the company's records show the following items and amounts Cash $8,990 cash withdrawals by owner $2,830 Accounts receivable $14,740 consulting revenue $14,740 office supplies $3,930 rent expense $4,300 land $45,980 salaries expense $7,740 office equipment $18,660 telephone expense $850 accounts payable $9,170 miscellaneous expense $670 owner investments $84,780 Using the above information prepare and October statement of owner's equity for Ernst Consulting ERNST CONSULTING Statement of Owner’s Equity For Month Ended October 31 $0 0

On October 1, Ebony Ernst organized Ernst Consulting; On October 3, the owner contributed $84,780 in assets to launch the business. On October 31, the company's records show the following items and amounts Cash $8,990 cash withdrawals by owner $2,830 Accounts receivable $14,740 consulting revenue $14,740 office supplies $3,930 rent expense $4,300 land $45,980 salaries expense $7,740 office equipment $18,660 telephone expense $850 accounts payable $9,170 miscellaneous expense $670 owner investments $84,780 Using the above information prepare and October statement of owner's equity for Ernst Consulting ERNST CONSULTING Statement of Owner’s Equity For Month Ended October 31 $0 0

Name: On October 1, Ebony Ernst organized Ernst Consulting; On October 3, th
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Description: On October 1, Ebony Ernst organized Ernst Consulting; On October 3, the owner contributed $84,780 in assets to launch the business. On October 31, the company's records show the following items and amountsCash $8,990

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 18EB: Krespy Corp. has a cash balance of $7,500 before the following transactions occur: A. received...

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Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.
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