2-A)
THE GRAM CO. | ||
Income Statement | ||
For Month Ended May 31 | ||
Revenues: | ||
Consulting fees revenue ($5400+2500+3200) | $11100 | |
Expenses: | ||
Rent expense | 2200 | |
Cleaning expense | 750 | |
Salary expense (750+750) | 1500 | |
Telephone expense | 300 | |
Utilities expense | 280 | |
Total expenses | -5030 | |
Net income | $6070 |
2-B)
THE GRAM CO. | |
Statement of Retained earnings | |
For Month Ended May 31 | |
Retained earnings, May 1 | $0 |
Add: Net income | 6070 |
6070 | |
Less: Dividends | -1400 |
Retained earnings, May 31 | $4670 |
2-C)
THE GRAM CO. | |||
Balance Sheet | |||
May 31 | |||
Assets | Liabilities | ||
Cash | $42780 | Accounts payable | $80 |
Accounts receivable | 0 | Equity | |
Office equipment | 1970 | Common stock | 40000 |
Retained earnings | 4670 | ||
Total assets | $44750 | Total liabilities and equity | $44750 |
Cash= $40000-2200-750+5400-750+2500+3200-1890-750-300-280-1400= $42780
Accounts receivable= $2500-2500+3200-3200= $0
Office equipment= $1890+80= $1970
Accounts payable= $1890-1890+80= $80
Common stock= $40000
2-D)
THE GRAM CO. | ||
Statement of Cash Flows | ||
For Month Ended May 31 | ||
Cash flow from Operating activities: | ||
Cash received from customers | $11100 | |
Cash paid for rent | -2200 | |
Cash paid for cleaning services | -750 | |
Cash paid to employees (750+750) | -1500 | |
Cash paid for telephone | -300 | |
Cash paid for utilities | -280 | |
Net cash provided by operating activities | $6070 | |
Cash flow from Investing activities: | ||
Purchase of office equipment | -1890 | |
Net cash used in investing activities | -1890 | |
Cash flow from financing activities: | ||
Investment by shareholder | 40000 | |
Dividend paid | -1400 | |
Net cash provided by financing activities | 38600 | |
Net increase (decrease) in cash (6070-1890+38600) | $42780 | |
Add: Beginning cash balance | 0 | |
Ending cash balance | $42780 |
Required information (The following information applies to the questions displayed below) Gabi Gram started The Gram...
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...
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...
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 $43,500 cash in the company. 1 The company rented a furnished office and paid $2,400 cash for May’s rent. 3 The company purchased $1,890 of office equipment on credit. 5 The company paid $800 cash for...
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 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
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...