Required information 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 $41,500 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 $780 cash for this month's cleaning services. May 8 The company provided consulting services for a client and immediately collected $5,200 cash. May 12 The company provided $2,500 of consulting services for a client on credit. May 15 The company paid $780 cash for an assistant's salary for the first half of this month. May 20 The company received $2,500 cash payment for the services provided on May 12. May 22 The company provided $3,500 of consulting services on credit. May 25 The company received $3,500 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 $780 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 $1,700 cash in dividends to the owner (sole shareholder). Prepare the income statement for May. THE GRAM COMPANY Income Statement For Month Ended May 31 Revenues: Expenses 0 Total expenses 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 Prepare the balance sheet for May 31. THE GRAM COMPANY Balance Sheet May 31 Assets Total assets $ Total liabilities Liabilities Total equity 0 Total liabilities and equity 0 Equity 0 $ 0 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 $ Cash flows from investing activities Cash flows from financing activities 0 0 $ 0 Cash balance, May 1 0 Cash balance, May 31 $ 0