Question

Required information Problem 1-7A Analyzing transactions and preparing financial statements LO C 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 $43,000 cash in the company in exchange for its common stock 1 The company rented a furnished office and paid $2,300 cash for May's rent. 3 The company purchased $5,410 of office equipment on credit. 5 The company paid $730 cash for this month's cleaning services. 8 The company provided consulting services for a client and inmediately collected $5,700 cash. 12 The company provided $2,900 of consulting services for a client on credit. 15 The company paid $790 cash for an assistant's salary for the first half of this month. 20 The company received $2,900 cash payment for the services provided on May 12. 22 The company provided $3,900 of consulting services on eredit 25 The company received $3,900 cash payment for the services provided on May 22. 26 The company paid $5,410 cash for the office equipment purchased on May 3. 27 The company purehased $85 of advertising in this month' (May) local paper on ereditj cash payment ia due June 1 28 The company paid $790 cash for an aseistant'o salary for the second halt of this month. 30 The company paid $300 eash for this month's telephone bill. 30 The company paid $280 cash for this month's uti company paid $1,900 cash in dividends to the ovner (aole shareholder) Problem 1-7A Part 1 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.) Equity Assets Accounts Receivable Liabilities + Accounts CommonDividends Office ent "Payable Cash Next > ć Prev 670r7 iii

Answer 1

			Assets					=	Liabilities	+	Equity
	Date		Cash	+	Accounts receivable	+	Office equipment	=	Accounts payable	+	Common stock	-	Dividends	+	Revenues	-	Expenses
	May	1	43000	+		+		=		+	43000	-		+		-
		1	-2300	+		+		=		+		-		+		-	2300
		3		+		+	5410	=	5410	+		-		+		-
		5	-730	+		+		=		+		-		+		-	730
		8	5700	+		+		=		+		-		+	5700	-
		12		+	2900	+		=		+		-		+	2900	-
		15	-790	+		+		=		+		-		+		-	790
		20	2900	+	-2900	+		=		+		-		+		-
		22		+	3900	+		=		+		-		+	3900	-
		25	3900	+	-3900	+		=		+		-		+		-
		26	-5410	+		+		=	-5410	+		-		+		-
		27		+		+		=	85	+		-		+		-	85
		28	-790	+		+		=		+		-		+		-	790
		30	-300	+		+		=		+		-		+		-	300
		30	-280	+		+		=		+		-		+		-	280
		31	-1900	+		+		=		+		-	1900	+		-
			43000	+	0	+	5410	=	85	+	43000	-	1900	+	12500	-	5275
			48410					=	85	+	48325