(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 $40,500 cash in the company in exchange for its common stock. 1 The company rented a furnished office and paid $2,400 cash for May's rent. 3. The company purchased $1,850 of office equipment on credit. 5 The company paid $780 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 $2,600 of consulting services for a client on credit. 15 The company paid $770 cash for an assistant's 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 $3,400 of consulting services on credit. 25 The company received $3,400 cash payment for the services provided on May 22. 26 The company paid $1,850 cash for the office equipment purchased on May 3. 27 The company purchased $80 of advertising in this month's (May) local paper on credit; cash payment is due June 1. 28 The company paid $770 cash for an assistant's salary for the second half of this month. 30 The company paid $400 cash for this month's telephone bill. 30 The company paid $290 cash for this month's utilities. 31 The company paid $1,700 cash in dividends to the owner (sole shareholder). Required: 1. Enter the amount of each transaction on individual items of the accounting equation. Do not determine new account balances after each transaction. (Enter the transactions in the given order. Enter reductions to account balances with a minus sign.) Date Cash Accounts Receivable II Office Equipment Accounts Payable + Common Stock Dividends + Revenues Expenses May 1 11 + + 1 + + = + + x 3 5 This is a numeric cell, so please enter numbers only. 11 + + + 8 11 + 12 + I! + + + + + + + + + + + + + + + + 15 20 22 25 26 27 28 30 30 + + + + + + + + + = + + + + + + + + + 31 + + + + + + 0 + $ 0 $ 0 0 + GA 0 0 0 - $ 0 THE GRAM CO. Income Statement For Month Ended May 31 Revenues: Expenses Total expenses 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 0 Total equity 0 Total liabilities and equity Total assets $ $ 0 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 activities $ 0 Cash flows from investing activities Required information 0 Cash flows from investing activities 0 Cash flows from financing activities 0 $ 0 Cash balance, May 1 Cash balance, May 31 0 0 $ Coca-Cola and PepsiCo both produce and market beverages that are direct competitors. Key financial figures (in $ millions) for these businesses for a recent year follow. Key Figures ($ millions) Sales Net income Average assets Coca-Cola $22,538 5,050 29,020 PepsiCo $29,361 3,950 27,715 Required: 1. Compute return on assets for Coca-Cola and PepsiCo. (Enter values in $ millions.) Return on Assets 1 Choose Denominator: Choose Numerator: Return on Assets Return on assets / = Coca-Cola return PepsiCo return 1
