Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information formation applies to the questions displayed below] Gabi Gram started The Gram Co. a new business that began operations on May 1 The

image text in transcribed
image text in transcribed
image text in transcribed
Required information formation 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 $40,000 cash in the company in exchange for its common stock. 1 The company rented a furnished office and paid $2,200 cash for May's rent. 3 The company purchased $1,890 of office equipment on credit. 5 The company paid $750 cash for this month's cleaning services. 8 The company provided consulting services for a client and inmediately collected $5,400 cash. 12 The company provided $2,se0 of consulting services for a client on credit. 15 The company paid $750 cash for an assistant's salary for the first half of this month. 20 The company received $2,500 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. ay i paper on credit; cash 29 The company purchased 5e of ndertising in this month 27 The company purchased $80 of advertising in this month's (May) local paper on credit; cash payment is due June 1 28 The company paid $750 cash for an assistant's salary for the second half of this month. 30 The company paid $300 cash for this month's telephone bill. 30 The company paid $280 cash for this month's utilities. 31 The company paid $1,400 cash in dividends to the owner (sole shareholder). 2.1 Prepare income statement for May. THE GRAM CO. Income Statement For Month Ended May 31 Revenues Expenses Total expenses 2.2 Prepare statement of retained earnings for May. THE GRAM CO. Statement of Retained Earnings For Month Ended May 31 Retained earnings, May 1 Retained earnings, May 31

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_step_2

Step: 3

blur-text-image_step3

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

Auditing And Assurance Services A Systematic Approach

Authors: William Messier, Steven Glover, Douglas Prawitt

12th Edition

ISBN: 1264100671, 978-1264100675

More Books

Students also viewed these Accounting questions

Question

4. How would you deal with the store manager?

Answered: 1 week ago