Question

Requirea 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 $40,000 cash in the company in exchange for its common stock. 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 month's cleaning services. 8 The company provided consulting services for a client and immediately collected $5,400 cash. 12 The company provided $2,500 of consulting services for a client on credit. 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 company received $3,200 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 equipment on credit. 28 The company paid $750 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 $280 cash for this month's utilities. 31 The company paid $1,400 cash in dividends to the owner ( nds to the owner (sole shareholder). 2-a. Prepare income statement for May. 2-b. Prepare statement of retained earnings for May. 2-c. Prepare balance sheet for May 31. 3. Prepare statement of cash flows for May. Complete this question by entering your answers in the tabs below. Required 2A Required 2B Required 20 Required 3 Prepare income statement for May. THE GRAM CO. Income Statement For Month Ended May 31 Revenues: Expenses Total expenses

Answer 1

Cash flous statement (Andirect) 0 May 31 Cash flow from operating achlities Net inome $6070 (t) Change in $80 payable $6150 activities - $1970 Can Hlow from inuesting Equipment - $1970 caunflow from financing achruities Issue of stocle. $40000 Druidend paid - $1400 Busty balóneo places Changle in cash flow. Cash balance, May 31 $38600 $42780 $ 42730

Assets The Gum Co Balance Sheet. I liabilities Ruyable $42780 $80 Cash Equipment $1970 Equity Common stock $40000 Retained earning $4670 $44750. Total J$44750 80 Stetement of Retowned earning Retained coming May I 4 Profit $6070 D Dividend $1400) Releuned coming May 31 $4670

Income statement May 31 Revenue Sales Secure Sales Salles. $5400 $ 8500 $ 3200 // TRES Expense. Rent Cleaning seduices Assistant salaay Telephone bell Uklities $ 2200 6750 $150 $300 $280 30 SUNDAY Total expenses. Profit ($5030) $6070