Question
Required information Problem 1-7A Analyzing transactions and preparing financial statements LO P1, P2 [The following information applies to the questions displayed below.] Gabi Gram started
Required information
Problem 1-7A Analyzing transactions and preparing financial statements LO 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 $40,000 cash in the company.
1 The company rented a furnished office and paid $2,200 cash for Mays rent.
3 The company purchased $1,890 of office equipment on credit.
5 The company paid $750 cash for this months cleaning services.
8 The company provided consulting services for a client and immediately collected $5,400 cash.
12 The company provided $2,500 of consulting services for a client on credit.
15 The company paid $750 cash for an assistants 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.
26 The company paid $1,890 cash for the office equipment purchased on May 3.
27 The company purchased $80 of office equipment on credit.
28 The company paid $750 cash for an assistants salary for the second half of this month.
30 The company paid $300 cash for this months telephone bill.
30 The company paid $280 cash for this months utilities.
31 G. Gram withdrew $1,400 cash from the company for personal use.
Problem 1-7A Part 2 and 3
2-a. Prepare income statement for May. 2-b. Prepare statement of owner's equity for May. 2-c. Prepare Balance Sheet for May 31. 3. Prepare statement of cash flows for May.
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