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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 $43,500 cash in the company.
		1		The company rented a furnished office and paid $2,100 cash for Mays rent.
		3		The company purchased $1,910 of office equipment on credit.
		5		The company paid $770 cash for this months cleaning services.
		8		The company provided consulting services for a client and immediately collected $5,100 cash.
		12		The company provided $2,600 of consulting services for a client on credit.
		15		The company paid $730 cash for an assistants salary for the first half of this month.
		20		The company received $2,600 cash payment for the services provided on May 12.
		22		The company provided $3,900 of consulting services on credit.
		25		The company received $3,900 cash payment for the services provided on May 22.
		26		The company paid $1,910 cash for the office equipment purchased on May 3.
		27		The company purchased $80 of advertising in this months (May) local paper on credit; cash payment is due June 1.
		28		The company paid $730 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 $280 cash for this months utilities.
		31		G. Gram withdrew $1,500 cash from the company for personal use.

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

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 activites