Question

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.

1. Prepare income statement for May.

2. Prepare statement of owner's equity for May.

3. Prepare Balance Sheet for May 31.

4. Prepare statement of cash flows for May.

May		1		G. Gram invested $41,000 cash in the company.
		1		The company rented a furnished office and paid $2,400 cash for May’s rent.
		3		The company purchased $3,850 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 $5,600 cash.
		12		The company provided $2,500 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 $2,500 cash payment for the services provided on May 12.
		22		The company provided $3,100 of consulting services on credit.
		25		The company received $3,100 cash payment for the services provided on May 22.
		26		The company paid $3,850 cash for the office equipment purchased on May 3.
		27		The company purchased $75 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 $350 cash for this month’s telephone bill.
		30		The company paid $280 cash for this month’s utilities.
		31		G. Gram withdrew $2,000 cash from the company for personal use.

Answer 1