Income Statement Preparation for Ernst Consulting

Income Statement

A financial statement that shows the revenues, expenses, and net income of a company for a specific period of time, in this case, for the month of December.

Cash

The amount of $10,200 shown in the company's records as of December 31.

Accounts Receivable

The amount of $15,200 shown in the company's records as of December 31, representing the money owed to the company for services provided.

Salaries Expense

The amount of $18,310 paid as salaries to employees during the month of December.

Consulting Revenue

The amount of $2,340 earned from consulting services provided during the month of December.

Rent Expense

The amount of $3,550 spent on rent for the business premises during the month of December.

Telephone Expense

The amount of $45,990 spent on telephone expenses during the month of December.

Common Stock

The amount of $84,310 contributed by the owner in exchange for its common stock to launch the business on December 3.

Ernst Consulting

The name of the business organized by Jasmin Ernst on December 1.

Miscellaneous Expenses

The total amount of $8,740 spent on various other expenses during the month of December.