Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information Skip to question [The following information applies to the questions displayed below.] Gabi Gram started The Gram Company, a new business that began

Required information

Skip to question

[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 in exchange for its common stock.
May 1 The company rented a furnished office and paid $2,200 cash for Mays rent.
May 3 The company purchased $1,900 of equipment on credit.
May 5 The company paid $780 cash for this months cleaning services.
May 8 The company provided consulting services for a client and immediately collected $5,800 cash.
May 12 The company provided $2,900 of consulting services for a client on credit.
May 15 The company paid $800 cash for an assistants salary for the first half of this month.
May 20 The company received $2,900 cash payment for the services provided on May 12.
May 22 The company provided $3,900 of consulting services on credit.
May 25 The company received $3,900 cash payment for the services provided on May 22.
May 26 The company paid $1,900 cash for the equipment purchased on May 3.
May 27 The company purchased $80 of equipment on credit.
May 28 The company paid $800 cash for an assistants salary for the second half of this month.
May 30 The company paid $350 cash for this months telephone bill.
May 30 The company paid $250 cash for this months utilities.
May 31 The company paid $2,000 cash in dividends to the owner (sole shareholder).

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.)

image text in transcribed

Assets Liabilities + Equity Date Cash Account Titles for Expenses Accounts Receivable + + Equipment Accounts Payable Common Stock + Dividends Revenues Expenses 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 + = + + + + + + + = + + + + + + - + + + + + + + = + + + + + + + + + + + +

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Principles V4 0 And AME Engage

Authors: Joffe Parker

4th Edition

1926751728, 978-1926751726

More Books

Students also viewed these Accounting questions