Required information Problem 1-7A Analyzing transactions and preparing financial statements LO C4, P1, P2 The following information applies the questions displayed below.] Gabl 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. Va 1 G. Gram ivested $41, 000 cash in the company. 1 The company rented furnished of fice and paid $2, 200 cash for May s rent. Te any S740 cash for this nont oenioe gt 8 The coupany provided consulting services for a client and idiately collected $5, 600 cash 12 The compamny provi ded $2, 900 of consulting services for a client on credit. . this month 20 The comany received $2, 900 cash paynent for the services provided on ay 12. 22 The coupany provided $3, 600 of consulting services on credit. r 22. 2 The coman paid S6.3RO Cash for the nffice eguipuent. amchased on Vay 3. 27 The company purchased $0 of advertising in this month' s (May) local paper on credit; cash paynent is due Jne 1 second half of this month. cupany paid 30 The 30 Tha company paid $280 cash for this month' a utilities 31 G. Gram withdre $1, 600 cash from the company for personal use. bi11 Problem 1-7A Part 1 Required: . Enter the amount each transaction. (Enter the transactions in the given order. Enter reductions each transaction on individual items of the accounting equation. Do not determine new account balances after account balances with minus sign.) Answer is not complete. Answer not complete. Assets Liabilities Equity G. Gram, Accounts Office Accounts G. Gram, Capital Date Cash Revenues Expenses + Payable Withdrawals Receivable Equipment May 1 41 000 - 2,200 1 3 5.380 740 + = 5.600 - + 2,900 12 15 750 + + 20 2,900 22 3,600 - 25 3,600 (5,380) 26 (5.380) - - 80 27 + 750 28 + 30 400 30 280 (1.600) 1.600 + 31 S (5,380) 5,200 6,500 5,380 1.600 0 - 46 120 Answer is compiete but not enureiy correct. THE GRAM CO. Statement of Cash Flows For Month Ended May 31 Cash flows from operating activities Cash received from customers Cash paid for cleaning $ 12,100 (740) Cash paid for rent (2,200) Cash paid for telephone (400) Cash paid for utilities (280) Cash paid to employees (750) Net cash provided by operating activities Cash flows from investing activities Purchase of equipment 7,730 5,380 Net cash used by investing activities Cash flows from financing activities Withdrawal by owner 5,380 (1,600) Investment by owner 41,000 Net cash provided by financing activities Net increase in cash 39,400 52,510 Cash balance, May 1 0 Cash balance, May 31 52,510