On December 1, Jasmin Ernst organized Ernst Consulting; on December 3, the owner contributed $84,000 in assetsin exchange for its common stock to launch the business. On December 31, the company's records show thefollowing items and amounts.CashAccounts receivableoffice suppliesLandoffice equipmentAccounts payableCommon stock$ 11,360 Cash dividendsConsulting revenueRent expense14,0003,25046,000 Salaries expense18,000 Telephone expense8,500 Miscellaneous expenses84,000Exercise 1-21 (Static) Preparing a statement of cash flows LO P2Also assume the following:a. The owner's initial investment consists of $38,000 cash and $46,000 in land in exchange for its common stock.b. The company's $18,000 equipment purchase is paid in cash.c. The accounts payable balance of $8,500 consists of the $3,250 office supplies purchase and $5,250 in employee salaries yet tobe paid.d. The company's rent, telephone, and miscellaneous expenses are paid in cash.e. No cash has been collected on the $14,000 consulting revenue earned.$ 2,00014,0003,5507,000760580LLLUsing the above information prepare a December statement of cash flows for Ernst Consulting.AL-A---

The cash flow statement is one of the important financial statement of the business. The cash flow…

On December 1, Jasmin Ernst organized Ernst Consulting; on December 3, the owner contributed $84,000 in assets in exchange for its common stock to launch the business. On December 31, the company's records show the following items and amounts. Cash Accounts receivable office supplies Land Office equipment Accounts payable Common stock $ 11,360 Cash dividends 14,000 Consulting revenue 3,250 Rent expense 46,000 Salaries expense 18,000 Telephone expense 8,500 Miscellaneous expenses 84,000 Exercise 1-21 (Static) Preparing a statement of cash flows LO P2 $ 2,000 14,000 3,550 7,000 760 580 Also assume the following: a. The owner's initial investment consists of $38,000 cash and $46,000 in land in exchange for its common stock. b. The company's $18,000 equipment purchase is paid in cash. c. The accounts payable balance of $8,500 consists of the $3,250 office supplies purchase and $5,250 in employee salaries yet to be paid. d. The company's rent, telephone, and miscellaneous expenses are paid in cash. e. No cash has been collected on the $14,000 consulting revenue earned. Using the above information prepare a December statement of cash flows for Ernst Consulting.

On December 1, Jasmin Ernst organized Ernst Consulting; on December 3, the owner contributed $84,000 in assets in exchange for its common stock to launch the business. On December 31, the company's records show the following items and amounts. Cash Accounts receivable office supplies Land Office equipment Accounts payable Common stock $ 11,360 Cash dividends 14,000 Consulting revenue 3,250 Rent expense 46,000 Salaries expense 18,000 Telephone expense 8,500 Miscellaneous expenses 84,000 Exercise 1-21 (Static) Preparing a statement of cash flows LO P2 $ 2,000 14,000 3,550 7,000 760 580 Also assume the following: a. The owner's initial investment consists of $38,000 cash and $46,000 in land in exchange for its common stock. b. The company's $18,000 equipment purchase is paid in cash. c. The accounts payable balance of $8,500 consists of the $3,250 office supplies purchase and $5,250 in employee salaries yet to be paid. d. The company's rent, telephone, and miscellaneous expenses are paid in cash. e. No cash has been collected on the $14,000 consulting revenue earned. Using the above information prepare a December statement of cash flows for Ernst Consulting.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 1PA: Provide journal entries to record each of the following transactions. For each, also identify *the...

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