Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta

Exercise 103

Use the information in Exercise 1-15 to prepare an October 31 statement of cash flows for Ernst Consulting. 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. 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 fees earned.
Reference: Exercise 1-15
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,000 in assets to launch the business. On October 31, the company's records show the following items and amounts. Use this information to prepare an October income statement for the business.