Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 $41,500 cash in the company. |
---|---|
May 1 | The company rented a furnished office and paid $2,300 cash for Mays rent. |
May 3 | The company purchased $1,890 of equipment on credit. |
May 5 | The company paid $740 cash for this months cleaning services. |
May 8 | The company provided consulting services for a client and immediately collected $5,500 cash. |
May 12 | The company provided $2,800 of consulting services for a client on credit. |
May 15 | The company paid $770 cash for an assistants salary for the first half of this month. |
May 20 | The company received $2,800 cash payment for the services provided on May 12. |
May 22 | The company provided $3,400 of consulting services on credit. |
May 25 | The company received $3,400 cash payment for the services provided on May 22. |
May 26 | The company paid $1,890 cash for the equipment purchased on May 3. |
May 27 | The company purchased $75 of equipment on credit. |
May 28 | The company paid $770 cash for an assistants salary for the second half of this month. |
May 30 | The company paid $400 cash for this months telephone bill. |
May 30 | The company paid $260 cash for this months utilities. |
May 31 | G. Gram withdrew $1,900 cash from the company for personal use. |
2-a. Prepare the income statement for May. 2-b. Prepare the statement of owner's equity for May. 2-c. Prepare the balance sheet for May 31. 3. Prepare the statement of cash flows for May.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started