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

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. Gran invested $40,000 cash in the company in exchange for its common stock. Required: 1 The company rented a furnished office and paid $2,200 cash for May's rent. 3 The company purchased $1,890 of 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 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 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 equipment purchased on May 3. 27 The company purchased $80 of equipment on credit. 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 The company paid $1,400 cash in dividends to the owner (sole shareholder). 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.) Date Cash Assets Accounts Receivable Liabilities Accounts Equity Equipment Payable Common Stock Dividends Revenues Expenses Account Titles for Expenses May 1 $40,000+ . $ 40,000 . 2,200 1 3 . + 5 . 8 12 15 20 22 25 26 27 28 30 . 30 + B 31 + " $40,000+ $ 0+ $ 0 = $ 0 . $ 40,000- $ 0 + $ 0- $ 2,200

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

Authors: Walter Harrison, Charles Horngren, William Thomas

10th edition

133796833, 133427536, 9780133796834, 978-0133427530

More Books

Students also viewed these Accounting questions

Question

What are the three main sources of disability income?

Answered: 1 week ago