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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 $42,000 cash in the company in exchange for its common stock.
		1		The company rented a furnished office and paid $2,300 cash for Mays rent.
		3		The company purchased $4,890 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 $5,500 cash.
		12		The company provided $2,400 of consulting services for a client on credit.
		15		The company paid $710 cash for an assistants salary for the first half of this month.
		20		The company received $2,400 cash payment for the services provided on May 12.
		22		The company provided $3,700 of consulting services on credit.
		25		The company received $3,700 cash payment for the services provided on May 22.
		26		The company paid $4,890 cash for the office equipment purchased on May 3.
		27		The company purchased $85 of advertising in this months (May) local paper on credit; cash payment is due June 1.
		28		The company paid $710 cash for an assistants salary for the second half of this month.
		30		The company paid $350 cash for this months telephone bill.
		30		The company paid $290 cash for this months utilities.
		31		The company paid $1,600 cash in dividends to the owner (sole shareholder).

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 $42,000 cash in the company in exchange for its common stock. 1 The company rented a furnished office and paid $2,300 cash for May's rent. 3 The company purchased $4,890 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 immediately collected $5,500 cash. 12 The company provided $2,400 of consulting services for a client on credit 15 The company paid $710 cash for an assistant's salary for the first half of this month 20 The company received $2,400 cash payment for the services provided on May 12. 22 The company provided $3,700 of consulting services on credit, 25 The company received $3,700 cash payment for the services provided on May 22. 26 The company paid $4,890 cash for the office equipment purchased on May 3. 27 The company purchased $85 of advertising in this month' s (May) local paper on credit; cash payment is due June 28 The company paid $710 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 The company paid $1,600 cash in dividends to the owner (sole shareholder). 2.1. Prepare income statement for May. THE GRAM CO Income Statement For Month Ended May 31 Revenues: Consulting services revenue Expenses Rent expense Advertising expense Cleaning expense Salaries expense Telephone expense Utilities expense Total expenses Net income 0 2.2. Prepare statement of retained earnings for May. THE GRAM CO. Statement of Retained Earnings For Month Ended May 31 Retained earnings, May 1 0 0 Retained earnings, May 31 0 2.3. Prepare Balance Sheet for May 31. THE GRAM CO Balance Sheet May 31 Assets Liabilities Equity Total equity 0 Total liabilities and equity$ Total assets 0 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 Cash balance, May 1 Cash balance, May 31