Question

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 $83,010 in assets in exchange for its common stock to launch the business. on december 31, the companys records show the following items and amounts. cash $14,890 cash dividends $930 accounts receivable 12,820 consulting revenue 12,820 office supplies 2,290 rent expense 2,530 office equipment 16,900 salaries expense 5,780 land 45,960 telephone expense 790 accounts payable 7,670 miscellaneous expenses 610 common stock 83,010 using the above information prepare a december income statement for the business. ernst consulting

Explanation:

Step1: Identify revenue

Revenue is consulting revenue which is $12,820$.

Step2: Calculate total expenses

Total expenses = Rent expense+Salaries expense+Telephone expense+Miscellaneous expenses = $2,530 + 5,780+790 + 610=9,710$.

Step3: Calculate net income

Net income = Revenue - Total expenses = $12,820-9,710 = 3,110$.

Answer:

Ernst Consulting	Amount
Consulting Revenue	$12,820$
Expenses
Rent Expense	$2,530$
Salaries Expense	$5,780$
Telephone Expense	$790$
Miscellaneous Expenses	$610$
Total Expenses	$9,710$
Net Income	$3,110$