Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below) On December 1, Jasmin Ernst organized Ernst Consulting, On December 3, the owner contributed $83,660 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 $ 12,040 Cash dividends 13,720 Consulting revenue 2,990 Rent expense 17,710 Salaries expense 45,940 Telephone expense 8,230 Miscellaneous expenses 83,660 $ 1,760 13,720 3,210 6,690 870 680 Exercise 1-18 (Algo) Preparing an income statement LO P2 Using the above information prepare a December income statement for the business. ERNST CONSULTING Income Statement Net income Using the above information prepare a December statement of retained earnings for Ernst Consulting. Hint: December 1 was $0. 5 ERNST CONSULTING Statement of Retained Earning Retained earnings, December 1 $ 0 Add: Net income 2,270 2,270 1,760 510 Less: Dividends Retained earnings, December 31 $ Exercise 1-20 (Algo) Preparing a balance sheet LO P2 Use the above information to prepare a December 31 balance sheet for Ernst Consulting. Answer is not complete. ERNST CONSULTING Balance Sheet Liabilities Accounts payable 8,230 Assets Cash Accounts receivable Office supplies Office equipment Land $ 12,040 13,720 2,990 17.710 45,940 Total liabilities 8,230 Equity Common stock Retained earnings Total equity Total liabilities and equity 83,660 510 84,170 92,400 IS Total assets $ 92,400