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 eanings, October 1 as $0. $ 9,390 16,020 3,830 45,980 18,550 9,060 84, 580 Cash Accounts receivable Cash dividends $ 2,650 16,020 4,190 7,570 830 24 Office supplies Land Office equipment Accounts payable Common stock Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses 650

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 eanings, October 1 as $0. $ 9,390 16,020 3,830 45,980 18,550 9,060 84, 580 Cash Accounts receivable Cash dividends $ 2,650 16,020 4,190 7,570 830 24 Office supplies Land Office equipment Accounts payable Common stock Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses 650

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 25E

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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 18,550 9,060 84,580 Cash dividends Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses $ 2,650 16,820 4,190 7,570 830 650 Cash Accounts receivable Office supplies Land office equipment Accounts payable Common stock Exercise 1-17 Preparlng a balance sheet LO P2 Using the above information prepare an October 31 balance sheet for Ernst Consulting. ERNST CONSULTING Balance Sheet 2$
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! Required information [The following information applies to the questions displayed below.] The following information pertains to Rossow Corporation and its investee Reimer Company: a. Rossow purchased 1,900 shares of Reimer on July 12, 2021, for $72,200; b. Reimer reported $45,000 net income on December 31, 2021; c. Reimer's stock price was $44 on December 31, 2021; d. Reimer declared and paid a $3 per share cash dividend on May 1, 2022; e. Reimer reported $45,000 net income on December 31, 2022; and f. Reimer's stock price was $39 on December 31, 2022. 2. Prepare journal entries to record the facts in the case, assuming Rossow owns 43 percent of Reimer's stock. Reimer reported $45,000 of net income each year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet A B C Record the purchase of 1,900 shares (43%) of Reimer Company for $72,200. The company will record the investment…
On January 2, Todd Company acquired 40% of the outstanding stock of McGuire Company for $205,000. For the year ending December 31, McGuire earned income of $48,000 and paid dividends of $14,000. Required: Journalize the entries for Todd Company for the purchase of the stock, share of McGuire Company income, and dividends received from McGuire Company. If an amount box does not require an entry, leave it blank. Jan. 2 Dec. 31 Dec. 31 0000 ☐☐☐☐☐☐
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