Problem 1-7A (Algo) Analyzing transactions and preparing financial statements LO P1, P2 [The following information applies to the questions displayed below.] 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 $42,500 cash in the company in exchange for its common stock. May 1 The company rented a furnished office and paid $2,200 cash for May's rent. May 3 The company purchased $1,880 of equipment on credit. May 5 The company paid $750 cash for this month's cleaning services. May 8 The company provided consulting services for a client and immediately collected \$5,500 cash. May 12 The company provided $2,500 of consulting services for a client on credit. May 15 The company paid $750 cash for an assistant's salary for the first half of this month. May 20 The company received $2,500cash payment for the services provided on May 12 . May 22 The company provided $3,000 of consulting services on credit. May 25 The company received $3,000 cash payment for the services provided on May 22. May 26 The company paid $1,880 cash for the equipment purchased on May 3. May 27 The company purchased $85 of equipment on credit. May 28 The company paid $750 cash for an assistant's salary for the second half of this month. May 30 The company paid $300 cash for this month's telephone bill. May 30 The company paid $290 cash for this month's utilities. May 31 The company paid $1,600 cash in dividends to the owner (sole shareholder). Problem 1-7A (Algo) Part 2 and 3 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. Dwannmotho innomn atatnmant fan MAnve \begin{tabular}{|l|r|} \hline \multicolumn{2}{|c|}{ THE GRAM COMPANY } \\ \hline \multicolumn{2}{|c|}{ Statement of Retained Earnings } \\ \hline \multicolumn{2}{|c|}{ For Month Ended May 31 } \\ \hline Retained earnings, May 1 & $ \\ \hline Add: Net income & \\ \hline & \\ \hline & 0 \\ \hline Less: Dividends & $ \\ \hline Retained earnings, May 31 & 0 \\ \hline \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline Cash flows from financing activities & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & 0 \\ \hline & & $ \\ \hline Cash balance, May 1 & & 0 \\ \hline Cash balance, May 31 & $ & 0 \\ \hline \end{tabular}