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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 $2,100 cash for May’s rent.
		3		The company purchased $1,870 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 $5,900 cash.
		12		The company provided $2,800 of consulting services for a client on credit.
		15		The company paid $720 cash for an assistant’s salary for the first half of this month.
		20		The company received $2,800 cash payment for the services provided on May 12.
		22		The company provided $3,900 of consulting services on credit.
		25		The company received $3,900 cash payment for the services provided on May 22.
		26		The company paid $1,870 cash for the office equipment purchased on May 3.
		27		The company purchased $80 of office equipment on credit.
		28		The company paid $720 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		The company paid $1,600 cash in dividends to the owner (sole shareholder).

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.)

Assets = Liabilities + Equity Date Cash + Accounts Receivable + Office Equipment = Accounts Payable + Common Stock – Dividends + Revenues – Expenses May 1 $43,000 + + = + $43,000 – + – 1 + + = + – + – 3 + + = + – + – 5 + + = + – + – 8 + + = + – + – 12 + + = + – + – 15 + + = + – + – 20 + + = + – + – 22 + + = + – + – 25 + + = + – + – 26 + + = + – + – 27 + + = + – + – 28 + + = + – + – 30 + + = + – + – 30 + + = + – + – 31 + + = + – + – $43,000 + $0 + $0 = $0 + $43,000 – $0 + $0 – $0

Answer 1

Answer:

		Assets						Liabilities		Equity
Date		Cash	+	Accounts Receivable	+	Office Equipment	=	Accounts payable	+	Common Stock	-	Dividends	+	Revenues	-	Expenses
May	1	$43,000	+		+		=		+	$43,000	-		+		-
	1	($2,100)	+		+		=		+		-		+		-	$2,100
	3		+		+	$1,870	=	$1,870	+		-		+		-
	5	($750)	+		+		=		+		-		+		-	$750
	8	$5,900	+		+		=		+		-		+	$5,900	-
	12		+	$2,800	+		=		+		-		+	$2,800	-
	15	($720)	+		+		=		+		-		+		-	$720
	20	$2,800	+	($2,800)	+		=		+		-		+		-
	22		+	$3,900	+		=		+		-		+	$3,900	-
	25	$3,900	+	($3,900)	+		=		+		-		+		-
	26	($1,870)	+		+		=	($1,870)	+		-		+		-
	27		+		+	$80	=	$80	+		-		+		-
	28	($720)	+		+		=		+		-		+		-	$720
	30	($350)	+		+		=		+		-		+		-	$350
	30	($280)	+		+		=		+		-		+		-	$280
	31	($1,600)	+		+		=		+		-	$1,600	+		-
		$47,210	+	$0	+	$1,950	=	$80	+	$43,000	-	$1,600	+	$12,600	-	$4,920