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On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $85,360 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 $ 7,010 Cash dividends $ 3,390
Accounts receivable 18,350 Consulting revenue 18,350
Office supplies 4,480 Rent expense 4,820
Office equipment 19,360 Salaries expense 8,370
Land 46,040 Telephone expense 910
Accounts payable 9,740 Miscellaneous expenses 720
Common stock 85,360

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Based on the financial details of Ernst Consulting, the Income Statement would be:

                                  Ernst Consulting Income Statement

Revenue

Consulting revenue                                               18,350

Total revenue                                                        18,350

Expenses

Miscellaneous expenses                   720

Rent expense                                  4,820

Salaries expense                            8,370

Telephone expense                          910

Total Expenses                                                      (14,820)

Net Income                                                              $3, 530

What is the Net Income used for?

The net income allows the company to see its total profits for the year after expenses have been accounted for.

It is calculated by deducting expenses from the revenue like Ernst Consulting's income statement shows.

Find out more on the Income Statement at https://brainly.com/question/21851842.

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