Solution: | |||||
The Gram Co. | |||||
Income Statement | |||||
For the month ended May 31 | |||||
Particulars | $ | ||||
Sales | $ 11,500 | ||||
Total Sales | $ 11,500 | ||||
Less Expense: | |||||
Cost of goods sold | |||||
Cleaning Expense | $ 740 | ||||
Utilities Expense | $ 280 | ||||
Rent Expense | $ 2,200 | ||||
Telephone Expense | $ 300 | ||||
Salary Expense | $ 1,460 | ||||
Total Expense | $ 4,980 | ||||
Net Income | $ 6,520 | ||||
d | The Gram Co. | ||||
Statement of Shareholder's Equity | |||||
For the month ended May 31 | |||||
Share Capital | Retained Earnings | Total | |||
Balance, May 1 | - | - | $ - | ||
Add: Net Income for may | - | $ 6,520 | $ 6,520 | ||
Add: Issuance of Common Stock | $ 42,500 | - | $ 42,500 | ||
Less: Dividends paid | - | $ (1,500) | $ (1,500) | ||
Balance, May 1 | $ 42,500 | $ 5,020 | $ 47,520 | ||
The Gram Co. | |||||
Balance Sheet | |||||
May 31 | |||||
Assets | Liabilities | ||||
Particulars | $ | Particulars | $ | ||
Cash | 45600 | Accounts payable | 85 | ||
Office Equipment | 2005 | ||||
Accounts Receivable | 0 | ||||
Equities | |||||
Common Stock | 42500 | ||||
Retained Earnings | $ 5,020 | ||||
Total assets | 47605 | Total Liabilities and equities | 47605 | ||
The Gram Co. | |||||
CASH FLOW STATEMENT | |||||
Particulars | $ | ||||
A | Cash flows from operating activities | ||||
Net income | $ 6,520 | ||||
Adjustments for non-cash effects: | |||||
Depreciation expense | - | ||||
Adjustments to reconcile net income cash | |||||
Increase in Account payable | $85 | ||||
Net cash inflow from operating activities | $6,605 | ||||
B | Cash flows from investing activities | ||||
Purchase of equipment | ($2,005) | ||||
Net cash ouflow from investing | ($2,005) | ||||
C | Cash flows from financing activities | ||||
Common stock issued | $42,500 | ||||
Dividend paid | ($1,500) | ||||
Net cash inflow from financing activities | $41,000 | ||||
Net decrease in cash $ | $45,600 | ||||
Cash at beginning of year | $0 | ||||
Cash at end of year | $45,600 |
Required information [The following information applies to the questions displayed below.) Gabi Gram started The Gram...
Required 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 $42,500 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 $1,920 of office equipment on credit. 5...
Required 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 $42,500 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 $1,920 of office equipment on credit. 5...
Required 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 $42,500 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 $1,920 of office equipment on credit. 5...
Required 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 16. Gram invested $43,500 cash in the company in exchange for its common stock. 1 The company rented a furnished office and paid $2,500 cash for May's rent. 3 The company purchased $1,860 of office equipment on credit. 5 The...
i ne Tollowing information applies to the questions aisplayed 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 $42,500 cash in the company. 1 The company rented a furnished office and paid $2,2ee cash for May's rent. 3 The company purchased $1,868 of office equipment on credit. 5 The company paid $730 cash for this...
Required 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 $42,500 cash in the company in exchange for its common stock. 1 The company rented a furnished office and paid $2,100 cash for May’s rent. 3 The company purchased $5,670 of office equipment on credit. 5...
Required 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 $43,500 cash in the company in exchange for its common stock. 1 The company rented a furnished office and paid $2,500 cash for May's rent. 3 The company purchased $1,860 of office equipment on credit. 5...
Required 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 $42,000 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 $4,890 of office equipment on credit. 5...
Required 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 10. 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...
Required 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 $43,500 cash in the company. 1 The company rented a furnished office and paid $2,300 cash for May's rent. 3 The company purchased $5,020 of office equipment on credit. 5 The company paid $730 cash for...