Answered step by step
Verified Expert Solution
Link Copied!

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

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 Gabi Gram invested $43,000 cash in the company.
May 1 The company rented a furnished office and paid $2,200 cash for Mays rent.
May 3 The company purchased $1,910 of equipment on credit.
May 5 The company paid $790 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 $780 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 $3,800 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 $780 cash for an assistants salary for the second half of this month.
May 30 The company paid $300 cash for this months telephone bill.
May 30 The company paid $250 cash for this months utilities.
May 31 Gabi Gram withdrew $1,500 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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Accounting Volume 2 Managerial Accounting

Authors: OpenStax

1st Edition

0357364805, 9780357364802

More Books

Students also viewed these Accounting questions