Required information Problem 1-7A Analyzing transactions and preparing financial statements LO C4, 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. Gran invested $45,000 cash in the company. 1 The company rented a furnished office and paid $2,300 cash for May's rent. 3 The company purchased $4,610 of office equipment on credit. 5 The company paid $770 cash for this month's cleaning services. 8 The company provided consulting services for a client and immediately collected $5,300 cash. 12 The company provided $2,900 of consulting services for a client on credit. 15 The company paid $740 cash for an assistant's salary for the first half of this month. 20 The company received $2.900 cash payment for the services provided on May 12. 22 The company provided $3,100 of consulting services on credit. 25 The company received $3,180 cash payment for the services provided on May 22. 26 The company paid $4,610 cash for the office equipment purchased on May 3. 27 The company purchased $90 of advertising in this month's (May) local paper on credit; cash payment is due June 1. 28 The company paid $740 cash for an assistant's salary for the second half of this month. 30 The company paid $350 cash for this month's telephone bill. 30 The company paid $290 cash for this month's utilities. 31 G. Gran withdrew $1,500 cash from the conpany for personal use. Problem 1-7A Part 2 and 3 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 owner's equity for May. THE GRAM CO. Statement of Owner's Equity For Month Ended May 31 G. Gram, Capital, May 1 $ 0 G. Gram, Capital, May 31 2.3. Prepare Balance Sheet for May 31. THE GRAM CO. Balance Sheet May 31 Assets Liabilities Equity Total assets Total liabilities and equity 3. Prepare statement of cash flows for May. (Cash outflows should be indicated with a minus sign.) THE GRAM CO. 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 Cash balance, May 1 Cash balance, May 31