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HW-CH 1 Saved Required information Problem 1-7A Analyzing transactions and preparing financial statements LO P1, P2 (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. comple transactions during its first month of operations. May 1 G. Gram invested $40,000 cash in the company in exchange for its comnon stack. 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 nonth's cleaning services. 8 The company provi ded consulting services for a client and inmediately collected $5,400 cash. 12 The company provided $2.50e of consulting services for a client on credit. A 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 conpany received $3.20ee 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 purchased $80 of office equipnent on credit. X 28 The company paid $75e 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 $28e cash for this nonth's utilities. 31 The company paid $1,400 cash in dividends to the owner (sole shareholder). Problem 1-7A Part 1 Required information Accounts Office Equipment Accounts Common Stock Date Cash +] Dividends Revenues %3D Receivable Payable May $40,000 + 40,000 %3D (2,200) + %3D (1,890)+ 1,890 = %3D (750) + 5,400 + %3D 8. 5,400 %3D 12 (2,500) + 2,500 15 (750) + 2,500 + %3D (2,500) + 20 %3D +] 3,200 (3,200) 22 + +. %3D +] (3,200) + 3,200 + 25 +] 1,890 + (1,890) +] 26 = ] (80) 80 = +] + 27 %3D (750) + 28 %3D 30 (300) + +] (280) (1,400)+ 30 + 1,400 + 31 $ 4,700 %24 1,400 + 40,000 $ (4,470) %24 $ (2,500) + $42,780+ 2$ 3,860 =