Required information [The following information applies to the questions displayed below.] On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $85,160 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 Office equipment Land Accounts payable Common stock $ 7,520 Cash dividends 17,950 4,310 19,190 46,000 9,600 Miscellaneous expenses 85,160 Consulting revenue Rent expense Salaries expense Telephone expense $ 3,190 17,950 4,720 8,220 900 710 Also assume the following: a. The owner's initial investment consists of $39,160 cash and $46,000 in land in exchange for its common stock. b. The company's $19,190 equipment purchase is paid in cash. c. Cash paid to employees is $2,930. The accounts payable balance of $9,600 consists of the $4,310 office supplies purchase and $5,290 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 $17,950 consulting revenue earned. Using the above information prepare a December statement of cash flows for Ernst Consulting. (Cash outflows should be indicated by a minus sign.)
Required information [The following information applies to the questions displayed below.] On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $85,160 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 Office equipment Land Accounts payable Common stock $ 7,520 Cash dividends 17,950 4,310 19,190 46,000 9,600 Miscellaneous expenses 85,160 Consulting revenue Rent expense Salaries expense Telephone expense $ 3,190 17,950 4,720 8,220 900 710 Also assume the following: a. The owner's initial investment consists of $39,160 cash and $46,000 in land in exchange for its common stock. b. The company's $19,190 equipment purchase is paid in cash. c. Cash paid to employees is $2,930. The accounts payable balance of $9,600 consists of the $4,310 office supplies purchase and $5,290 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 $17,950 consulting revenue earned. Using the above information prepare a December statement of cash flows for Ernst Consulting. (Cash outflows should be indicated by a minus sign.)
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 52PSB
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![Required information
[The following information applies to the questions displayed below.]
On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $85,160 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
Office equipment
Land
Accounts payable
Common stock
$ 7,520 Cash dividends
17,950
4,310
19,190
46,000
9,600 Miscellaneous expenses
85,160
Consulting revenue
Rent expense
Salaries expense
Telephone expense
$ 3,190
17,950
4,720
8,220
900
710
Also assume the following:
a. The owner's initial investment consists of $39,160 cash and $46,000 in land in exchange for its common stock.
b. The company's $19,190 equipment purchase is paid in cash.
c. Cash paid to employees is $2,930. The accounts payable balance of $9,600 consists of the $4,310 office supplies purchase and
$5,290 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 $17,950 consulting revenue earned.
Using the above information prepare a December statement of cash flows for Ernst Consulting. (Cash outflows should be indicated
by a minus sign.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4bb92da2-f6f4-40f2-b5ce-c6406117d6b0%2F5a4b1802-5dfb-4594-a2f8-d0db735483bb%2F15wqvqp_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $85,160 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
Office equipment
Land
Accounts payable
Common stock
$ 7,520 Cash dividends
17,950
4,310
19,190
46,000
9,600 Miscellaneous expenses
85,160
Consulting revenue
Rent expense
Salaries expense
Telephone expense
$ 3,190
17,950
4,720
8,220
900
710
Also assume the following:
a. The owner's initial investment consists of $39,160 cash and $46,000 in land in exchange for its common stock.
b. The company's $19,190 equipment purchase is paid in cash.
c. Cash paid to employees is $2,930. The accounts payable balance of $9,600 consists of the $4,310 office supplies purchase and
$5,290 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 $17,950 consulting revenue earned.
Using the above information prepare a December statement of cash flows for Ernst Consulting. (Cash outflows should be indicated
by a minus sign.)
Transcribed Image Text:ERNST CONSULTING
Statement of Cash Flows
For Month Ended December 31
Cash flows from operating activities
Cash received from customers
Cash paid for miscellaneous expenses
Cash paid for rent
Cash paid for telephone expenses
Cash paid to employees
Net cash used by operating activities
Cash flows from investing activities
Cash paid for office equipment
Net cash used by investing activities
Cash flows from financing activities
Cash dividends to shareholders
Cash investments from shareholders
Net cash provided by financing activities
Net increase in cash
Cash balance, December 1
Cash balance, December 31
$
0
$
$
0
0
0
0
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