Gabi Gram started The Gram Co., a new business that began operations on May 1. The Gram Co. completed the following transactions during its first month of operations.

May1G. Gram invested $42,000 cash in the company in exchange for its common stock.1The company rented a furnished office and paid $2,600 cash for May's rent.3The company purchased $1,880 of office equipment on credit.5The company paid $750 cash for this month's cleaning services.8The company provided consulting services for a client and immediately collected $5,700 cash.12The company provided $2,500 of consulting services for a client on credit.15The company paid $720 cash for an assistant's salary for the first half of this month.20The company received $2,500 cash payment for the services provided on May 12.22The company provided $3,800 of consulting services on credit.25The company received $3,800 cash payment for the services provided on May 22.26The company paid $1,880 cash for the office equipment purchased on May 3.27The company purchased $85 of advertising in this month's (May) local paper on credit; cash payment is due June 1.28The company paid $720 cash for an assistant's salary for the second half of this month.30The company paid $300 cash for this month's telephone bill.30The company paid $280 cash for this month's utilities.31The company paid $1,600 cash in dividends to the owner (sole shareholder).

2.1.Prepare income statement for May.

2.2.Prepare statement of retained earnings for May.

2.3.Prepare Balance Sheet for May 31.

3.Prepare statement of cash flows for May.(Cash outflows should be indicated with a minus sign.)