calculate five sheets
Gabi Gram started The Gram (20., a new business that began operations on May 1. The Gram Co. completed the following transactions during its rst month of operations. May 1 1 comm 28 30 30 31 G. Gram invested $43,500 cash in the company in exchange for its common stock. The company rented a furnished office and paid $2,100 cash for May's rent.. The company purchased $1,870 of ofce equipment on credit. The company paid $740 cash for this month's cleaning services. The company provided consulting services for a client and immediately collected $5,200 cash. The company provided $2,500 of consulting services for a client on credit. The company paid $720 cash for an assistant's salary for the first half of this month. The company received $2,500 cash payment for the services provided on May 12. The company provided $3,800 of consulting services on credit. The company received $3,800 cash payment for the services provided on May 22. The company paid $1,870 cash for the office equipment purchased on May 3. The company purchased $90 of advertising in this month's (May) local paper on credit; cash payment is due June 1. The company paid $720 cash for an assistant's salary for the second half of this month. The company paid $300 cash for this month's telephone bill. The company paid $270 cash for this month's utilities. The company paid $1,900 cash in dividends to the owner (sole shareholder). Required: 2. Enter the amount of each transaction on individual items of the accounting equation. Do not determine new account balances after each transaction. (Enter the transactions in the given order. Enter reductions to account balances with a minus sign.) 3-a. Prepare income statement for May. THE GRAM CO. Income Statement For Month Ended May 31 Revenues: Consulting services revenue $ 11,500 Expenses Utilities expense $ 270 Rent expense 2, 100 Cleaning expense 740 Advertising expense 90 Salaries expense 1,440 Telephone expense 300 Total expenses 4,940 Net income $ 6,5603-b. Prepare statement of retained earnings for May. THE GRAM CO. Statement of Retained Earnings For Month Ended May 31 Retained earnings, May 1 $ 0 Add: Net income 6,560 6,560 Less: Dividends 1,900 Retained earnings, May 31 $ 4,660 3-c. Prepare Balance Sheet for May 31. THE GRAM CO. Balance Sheet May 31 Assets Liabilities Cash Accounts receivable Accounts receivable Office equipment Equity Common stock Retained earnings Total assets $ 0 Total liabilities and equity $ 03-d. Prepare statement of cash flows for May. (Cash outflows should be indicated with a minus sign.) THE GRAM CO. Statement of Cash Flows For Month Ended May 31 Cash flows from operating activities Cash received from customers Cash paid for cleaning Cash paid to employees Cash paid for telephone Cash paid for utilities Cash paid for rent Net cash provided by operating activities $ 0 Cash flows from investing activities Purchase of equipment Net cash provided by investing activities 0 Cash flows from financing activities Investment from stockholders Cash dividends Net cash provided by financing activities O Net increase in cash EA Cash balance, May 1 o O Cash balance, May 31 tA O
