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 $ 42,000 cash in the company. 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 $800 cash for this month's cleaning services. May 8 The company provided consulting services for a client and immediately collected $5,800 cash. May 12 The company provided $2,800 of consulting services for a client on credit. May 15 The company paid $720 cash for an assistant's 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 $3,100 of consulting services on credit May 25 The company received $3,100 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 $720 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 $270 cash for this month' s utilities. May 31 G. Gram withdrew $1,900 cash from the company for personal use. Required: 1. Enter the amount of each transaction on individual items of the accounting equation. (Enter the transactions in the given order. Enter reductions to account balances with a minus sign. Select "NA" for account titles if the transaction does not include an expense.) = Liabilities + Equity Date Assets Accounts Receivable Cash Account Titles for Expenses Accounts Payable + Equipment + G. Gram, Withdrawals + Revenues - G. Gram, Capital $ 42,000 Expenses + + + $42,000 + (2200) + + + + (2,200) + + 1,880 - 1,880 + + + - + + (800) (800) + 5,800 + + + + 5,800 2,800 + 2,800 + + + + + + (720) (720) + 2,800 + + + May 1 May 1 May 3 May 5 May 8 May 12 May 15 May 20 May 22 May 25 May 26 May 27 May 28 May 30 May 30 May 31 (2,800) + 3,100 + (3,100) + + + - + + 3,100 + (1,880)| + + + + + + + (1,880) + 85 + + + + + + + + + (720) + (300) + (270) + (1,900) + $44,910 + + + + + = + - (1,900) + (1,900) + $ 0 + $ 1,880 $ 85 + $ 42,000 $ $ 8,600 $ (3,720) - 2-a. Prepare the income statement for May. 2-b. Prepare the statement of owner's equity for May. 2-c. Prepare the balance sheet for May 31. 3. Prepare the statement of cash flows for May. Complete this question by entering your answers in the tabs below. Required 2A Required 2B Required 2C Required 3 Prepare the income statement for May. THE GRAM COMPANY Income Statement For Month Ended May 31 Revenues: Expenses Total expenses Required 2A Required 2B >
