On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,200 in assets in
exchange for its common stock to launch the business. On December 31, the company's records show the following items
and amounts.
Cash
Accounts receivable
Office supplies
Office equipment
Land
Accounts payable
Common stock
$ 10,710 Cash dividends
14,600 Consulting revenue
3,450 Rent expense
18,170 Salaries expense
46,030 Telephone expense
8,630 Miscellaneous expenses
84,200
$ 2,180
14,600
3,750
7,160
780
600
Using the above information prepare a December statement of retained earnings for Ernst Consulting. Hint: Retained Earnings on
December 1 was $0.
ERNST CONSULTING
Steisment of Ratained Earning
For Month Ended December 31
Retained earnings, December 1
$
0