Question

Please please someone help me with these question.

1		G. Gram invested $43,000 cash in the company.
		1		The company rented a furnished office and paid $2,400 cash for May’s rent.
		3		The company purchased $1,930 of office equipment on credit.
		5		The company paid $740 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 $2,700 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 $2,700 cash payment for the services provided on May 12.
		22		The company provided $3,800 of consulting services on credit.
		25		The company received $3,800 cash payment for the services provided on May 22.
		26		The company paid $1,930 cash for the office equipment purchased on May 3.
		27		The company purchased $85 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 $400 cash for this month’s telephone bill.
		30		The company paid $250 cash for this month’s utilities.
		31		G. Gram withdrew $1,500 cash from the company for personal use

2-a. Prepare income statement for May.
2-b. Prepare statement of owner's equity for May.
2-c. Prepare Balance Sheet for May 31.
3. Prepare statement of cash flows for May

Answer 1

Solution:

Income Statement

for the month ending May 31

REVENUES Consulting Service Revenue EXPENSES Salaries Expense Rent Expense Utilities Expense Cleaning Service Expense Telephone Bill NET INCOME	$ 12,100	$ 12,100 5,290
	1,500 2,400 250 740 400
		6,810

OWNER’S EQUITY STATEMENT

Particulars	$
Owner’s Capital Owner’s Drawings Net Income	43,000 (1,500) 6,810
	48,310

           

BALANCE SHEET

as at May 31

ASSETS Current Assets Cash Fixed Assets Office Equipment LIABILITY AND OWNER’S EQUITY Current Liabilities Supplier of Office Equipment Owner’s Equity (Note)	$ 46,380 2,015
	48,395
	85 48,310
	48,395

CASH FLOW STATEMENT

Particulars		$
Cash flow from Operating Activities: Net Profit during the year Add:     Increase in Suppliers of Office Equipment             Cash flow from Investing Activities: Purchase of Office Equipments Cash flow from Financing Activities: Capital Withdrawn Net increase in cash Add:     Opening balance of Cash                         Closing Balance of Cash	6,810 85	6,895 (2,015) (1,500)
		3,380 43,000
		46,380