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 in exchange for its common stock.
May 1	The company rented a furnished office and paid $2,500 cash for Mays rent.
May 3	The company purchased $1,900 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 $5,600 cash.
May 12	The company provided $2,800 of consulting services for a client on credit.
May 15	The company paid $730 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 $3,700 of consulting services on credit.
May 25	The company received $3,700 cash payment for the services provided on May 22.
May 26	The company paid $1,900 cash for the equipment purchased on May 3.
May 27	The company purchased $85 of equipment on credit.
May 28	The company paid $730 cash for an assistants salary for the second half of this month.
May 30	The company paid $350 cash for this months telephone bill.
May 30	The company paid $300 cash for this months utilities.
May 31	The company paid $1,800 cash in dividends to the owner (sole shareholder).

2-a. Prepare the income statement for May. 2-b. Prepare the statement of retained earnings for May. 2-c. Prepare the balance sheet for May 31. 3. Prepare the statement of cash flows for May.

Required 2A Prepare the income statement for May.

THE GRAM COMPANY
Income Statement
For Month Ended May 31
Revenues:
Expenses
Total expenses		0

Required 2B Prepare the statement of retained earnings for May.

THE GRAM COMPANY
Statement of Retained Earnings
For Month Ended May 31
Retained earnings, May 1	$0
	0
Retained earnings, May 31	$0

Required 2C

• Required 3

Prepare the balance sheet for May 31.

THE GRAM COMPANY
Balance Sheet
May 31
Assets		Liabilities
		Total liabilities	0
		Equity
		Total equity	0
Total assets	$0	Total liabilities and equity	$0

• Required 3

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

THE GRAM COMPANY
Statement of Cash Flows
For Month Ended May 31
Cash flows from operating activities
		$0
Cash flows from investing activities
		0
Cash flows from financing activities
		0
		$0
Cash balance, May 1		0
Cash balance, May 31		$0