On October 1. Ebony Ernst organızed Ernst Consulting: on October 3. the owner contributed $84,580 in assets in exchange for Its common stock to launch the business. On October 31, the company's records show the following Items and amounts. Retained earnings, October 1 as $0. Cash Accounts receivable office supplies Land $ 9,390 16,e20 3,83e 45,98e 18,55e 9,06e 84,58e Cash dividends consulting revenue Rent expense salaries expense Telephone expense Miscellaneous expenses $ 2,650 16,020 4,190 7,570 830 650 office equipment Accounts payable Common stock Exercise 1-15 Preparing an income statement LO P2 Using the above Information prepare an October Income statement for the business. ERNST CONSULTING Income Statement For Month Ended October 31 Revenues Consulting revenue Expenses Rent expense Salaries expense Telephone expense Miscellaneous expenses Net income

On October 1. Ebony Ernst organızed Ernst Consulting: on October 3. the owner contributed $84,580 in assets in exchange for Its common stock to launch the business. On October 31, the company's records show the following Items and amounts. Retained earnings, October 1 as $0. Cash Accounts receivable office supplies Land $ 9,390 16,e20 3,83e 45,98e 18,55e 9,06e 84,58e Cash dividends consulting revenue Rent expense salaries expense Telephone expense Miscellaneous expenses $ 2,650 16,020 4,190 7,570 830 650 office equipment Accounts payable Common stock Exercise 1-15 Preparing an income statement LO P2 Using the above Information prepare an October Income statement for the business. ERNST CONSULTING Income Statement For Month Ended October 31 Revenues Consulting revenue Expenses Rent expense Salaries expense Telephone expense Miscellaneous expenses Net income

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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[The following information applies to the questions displayed below.] On October 1, Ebony Ernst organized Ernst Consulting: on October 3, the owner contributed $84,580 in assets in exchange for its common stock to launch the business. On October 31, the company's records show the following items and amounts. Retained eamings, October 1 as $0. $ 9,390 16,020 3,830 45,980 18,55e 9, 860 84,580 Cash dividends Cash Accounts receivable Office supplies Land Office equipment Accounts payable Common stock $ 2,650 Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses 16,020 4, 190 7,570 830 650 Exercise 1-15 Preparing an Income statement LO P2 Using the above information prepare an October income statement for the business. ERN ST CON SULTING Income Statement
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Shep Company's records show the following information for the current year. Beginning of year $ 50,800 $ 22,400 Total assets Total liabilities. End of year $ 81,000 $ 35,400 Determine net income (loss) for each of the following separate situations. Note: For all requirements, losses should be entered with a minus sign. a. Additional common stock of $3,400 was issued and dividends of $7,400 were paid during the current year. b. Additional common stock of $15,100 was issued and no dividends were paid during the current year. c. No additional common stock was issued and dividends of $12,400 were paid during the current year. a. Net income (loss) b. Net income (loss) c. Net income (loss)
The following information was taken from the accounting records of ATLANTA Company for the year ended December 31, 2021: • Net income during the year, P2,250.000 • Proceeds from the issuance of preference shares, P4,000,000 • Dividends paid on preference shares, P400,000 • Bonds payable converted to ordinary shares, P2,000,000 • Payment for purchase of machinery, P500,000 • Proceeds from sale of plant building, P1,200,000 • Retirement of bonds payable at face value, P2,500,000 • 2% bonus issue on ordinary shares, P300,000 • Purchase of ordinary treasury shares, P120,000 • Payment for the purchase of debt securities at amortized cost, P450,000 • Gain on sale of plant building. P200,000 • Depreciation expense,i • Doubtful accounts expense, P87,000 • Increase in accounts receivable, P325,000 • Decrease in merchandise inventory, P129,000 • Increase in investments in equity securities at FVTPL, P440,000 • Increase in accounts payable, P90,000 • Decrease in accrued expenses, P225,000 •…