70.2K

Verified Solution

Link Copied!

Required information (The following information applies to the questions displayed below] On December 1, Jasmin Emst organized Ernst Consulting. On December 3, the owner contributed $84,000 in assets 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 Owner investment 11,340 Cash withdrawals by ou 14,400 Consulting revenue 3,250 Bent expense 46,000 Salaries expense 14,0 3,550 140 8,500 Hisellaneous expense 14,000 500 18,000 Telephone expense Also assume the following a. The owner's initial investment consists of $38,000 cash and $46,000 in land. b. The company's $18,000 equipment purchase is paid in cash. c. Cash paid to employees is $1,750. 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 expense, telephone expense, and miscellaneous expenses are paid in cash e. No cash has yet been collected on the $14,000 consulting revenue eamed. Using the above information prepare a December statement of cash flows for Ernst Consulting (Cash outflows should be indicated by a minus sign.) ERNST CONSULTING Statement of Cash Flows For Month Ended December 21 Cash flows from operating activities Cash received from customers Check my work ERNST CONSULTING Statement of Cash Flows For Month Ended December 31 Cash flows from operating activities Cash received from customers $ 0 Cash flows from investing activities Cash flows from financing activities Cash balance, December 1 $ 0 0 Cash balance, December 31 $ 0

Answer & Explanation Solved by verified expert

See Answer