1-7A (Algo) Analyzing transactions and preparing financial statements LO P1, P2 [The following information applies to the questions displayed below.] Gabi Gram started The Gram Company, a new business that began operations on May 1. The Gram Company completed the following transactions during its first month of operations. May 1 G. Gram invested $43,500 cash in the company in exchange for its common stock. May 1 The company rented a furnished office and paid $2,300 cash for May's rent. May 3 The company purchased $1,910 of equipment on credit. May 5 The company paid $770 cash for this month's cleaning services. May 8 The company provided consulting services for a client and immediately collected $5,600 cash. May 12 The company provided $2,500 of consulting services for a client on credit. May 15 The company paid $790 cash for an assistant's salary for the first half of this month. May 20 The company received $2,500 cash payment for the services provided on May 12. May 22 The company provided $3,800 of consulting services on credit. May 25 The company received $3,800 cash payment for the services provided on May 22. May 26 The company paid $1,910 cash for the equipment purchased on May 3. May 27 The company purchased $85 of equipment on credit. May 28 The company paid $790 cash for an assistant's salary for the second half of this month. May 30 The company paid $350 cash for this month's telephone bill. May 30 The company paid $280 cash for this month's utilities. May 31 The company paid $2,000 cash in dividends to the owner (sole shareholder). Problem 1-7A (Algo) Part 1 Required: 1. Enter the amount of each transaction on individual items of the accounting equation. (Enter the transactions in the given order. Enter reductions to account balances with a minus sign. Select "NA" for account titles if the transaction does not include an expense.) Assets = Liabilities + Accounts Date Accounts Cash + Receivable + Equipment = + Payable Common Stock May 1 $43,500 + + = + $ 43,500 Equity Dividends + + Revenues May 1 (2,300) + + II = + May 3 + + 1,910 May 5 (770) + + = II II + + May 8 5,600 + + = May 12 + 2,500+ = May 15 (790) + + II +++ | | | + + + + | | | 5,600 + + 2,500 May 20 2,500 + + = + May 22 + 3,800+ = II + May 25 3,800 + + = II + + ++ 3,800 May 26 (1,910)+ + || + + May 27 + + 85 = + + I May 28 (790) + + = + + I May 30 (350) + + = + + I May 30 (280) + + + May 31 (2,000) + + || $46,210 + $ 6,300 + $ 1,995 II EA 0 + + + (2,000) + $ 43,500 $ (2,000) + $ 11,900 Expenses Account Titles for Expenses (790) Salary (350) Telephone (280) Utilities $ (1,420)