Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information The following information applies to the questions displayed below. Gabi Gram started The Gram Co., a new business that began operations on May

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Required information 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 May's rent. 3 The company purchased $1,890 of office equipment on credit. 5 The company paid $750 cash for this month's cleaning services. 8 The company provided consulting services for a client and inmediately 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 assistant's 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 purehased $80 of advertising in thie month'a (May) local paper on credits cash payment is due June 1 28 The company paid $750 cash for an assistant s salary for the second half of this month. 30 The company paid $300 cash for this month's telephone bill 30 The company paid $280 cash for this month's utilities. 31 G. Gram withdrew $1,400 cash from the company for personal use. 2.1 Prepare income statement for May Answer is complete but not entirely correct. THE GRAM CO Income Statement For Month Ended May 31 Revenues: Prev6 of 6Next 2.1 Prepare income statement for May 2 Answer is complete but not entirely correct. THE GRAM CO Income Statement For Month Ended May 31 Revenues Consulting services revenue 6,485 Expenses Advertising expse Cleaning expense 80 750 Rent expense Salaries expense Utilities expense Telephone expense 2,200 1,500 280 300 Total expenses Net income 5,110 1,375 1 Required information G. Gram, Capital, May 1 Add: Investment by Owner Add: Net income 40,000 rt 2 of 2 5,990 45,990 1,400 $ 44,590 Less: Withdrawals by Owner G. Gram, Capital, May 31 ts 2.3 Prepare Balance Sheet for May 31. Answer is not complete. THE GRAM CO Balance Sheet May 31 Assets Liabilities 42,780 Accounts payables 800 Cash Office equipment1,890G. Gram, Capital44,590 Equity 44,670 otal liabilities and equity Total assets $ 44,670 Answer is not complete. THE GRAM CO Statement of Cash Flows For Month Ended May 31 Cash flows from operating activities Cash paid for cleaning Cash paid for rent Cash paid for telephone Cash paid for utilities Cash paid to employees s750 2.200 01 300 280 1,5000 Net cash provided by operating S 5,030 activities Cash flows from investing activities Purchase of equipment 1,89001 Net cash provided by investing activities Cash flows from financing activities Investment by owner 1,890 40,000 Uush palu to employees 1,500 Net cash provided by operating $5,030 activities Cash flows from investing activities Purchase of equipment 1,890 Net cash provided by investing activities Cash flows from financing activities Investment by owner 1,890 40,000 Net cash provided by financing activities Net increase in cash Cash balance, May 1 40,000 $ 46,920

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

Step: 3

blur-text-image

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

Provider Audit In England Evaluating Medical Audit

Authors: James Buttery, Yvette; Walshe, Kieran; Rumsey, Moira; Amess, Moyra; Bennett, Jennifer & Coles

1st Edition

1898845034, 978-1898845034

More Books

Students also viewed these Accounting questions

Question

outline some of the current issues facing HR managers

Answered: 1 week ago