Problem 1-7A Analyzing transactions and preparing financial statements LO C4, P1, P2

[The following information applies to the questions displayed below.]

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.

May		1		G. Gram invested $42,500 cash in the company.
		1		The company rented a furnished office and paid $2,200 cash for Mays rent.
		3		The company purchased $4,800 of office equipment on credit.
		5		The company paid $780 cash for this months cleaning services.
		8		The company provided consulting services for a client and immediately collected $5,900 cash.
		12		The company provided $2,600 of consulting services for a client on credit.
		15		The company paid $730 cash for an assistants salary for the first half of this month.
		20		The company received $2,600 cash payment for the services provided on May 12.
		22		The company provided $3,200 of consulting services on credit.
		25		The company received $3,200 cash payment for the services provided on May 22.
		26		The company paid $4,800 cash for the office equipment purchased on May 3.
		27		The company purchased $80 of advertising in this months (May) local paper on credit; cash payment is due June 1.
		28		The company paid $730 cash for an assistants salary for the second half of this month.
		30		The company paid $400 cash for this months telephone bill.
		30		The company paid $260 cash for this months utilities.
		31		G. Gram withdrew $1,800 cash from the company for personal use.

Solve:

2.1. Prepare income statement for May. 2.2. Prepare statement of owner's equity 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.)

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Required information Problem 1-7A Analyzing transactions and preparing financial statements LO C4, P1, P2 [The following information applies to the questions displayed below.] 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. 1 G. Gram invested $42,500 cash in the company. 1 The company rented a furnished office and paid $2,200 cash for May's rent 3 The company purchased $4,800 of office equipment on credit 5 The company paid $780 cash for this month's cleaning services. 8 The company provided consulting services for a client and immediately collected $5,900 cash. 12 The company provided $2,600 of consulting services for a client on credit 15 The company paid $730 cash for an assistant's salary for the first half of this month. 20 The company received $2,600 cash payment for the services provided on May 12. 22 The company provided $3,200 of consulting services on credit. 25 The company received $3,200 cash payment for the services provided on May 22. 26 The company paid $4,800 cash for the office equipment purchased on May 3. 27 The company purchased $80 of advertising in this month's (May) local paper on credit; cash payment is May due June 1. 28 The company paid $730 cash for an assistant's salary for the second half of this month 30 The company paid $400 cash for this month's telephone bill 30 The company paid $260 cash for this month's utilities. 31 G. Gram withdrew $1,800 cash from the company for personal use. Problem 1-7A Part 2 and 3 2.1. Prepare income statement for May THE GRAM CO. Income Statement For Month Ended May 31 Revenues: Expenses Total expenses 0 2.2. Prepare statement of owner's equity for May. THE GRAM CO. Statement of Owner's Equity For Month Ended May 31 G. Gram, Capital, May 1 $ 0 G. Gram, Capital, May 31 EA 2.3. Prepare Balance Sheet for May 31. THE GRAM CO. Balance Sheet May 31 Liabilities Assets Equity Total liabilities and equity Total assets 3. Prepare statement of cash flows for May. (Cash outflows should be indicated with a minus sign.) THE GRAM CO. Statement of Cash Flows For Month Ended May 31 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash balance, May 1 Cash balance, May 31