Question

Molag pak 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. 1 G. Gram invested $40,000 cash in the company in exchange for its common atock. 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 company paid $750 cash for this month's cleaning services. 8 The company provided consulting services for a client and immediately collected $5,400 cash. 12 The company provided $2,500 of consulting services for a elient on credit. 15 The company paid $750 cash for an assistant's nalary for the first half of this month. 20 The company received $2,500 cash payment for the services provided on May 12. 22 The company provided $3,200 of consulting services on credit. 25 The company received $3,200 cash payment for the services provided on May 22. 26 The company paid $1,890 canh for the office equipment purchased on May 3. 27 The company purchased $80 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 $300 cash for this month's telephone bill. 30 The company paid $280 cash for this month'a utilities. 31 The company paid $1,400 cash in dividends to the owner (sole shareholder). May 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. Select "NA" for account titles if the transaction does not include an expense.)

Answer 1

Cash + Assets Accounts + Office Receivable Equipment Liabilities Accounts Payable Owner's Equity Common - Dividends + Revenues - Expenses Account Title stock for Expenses 40,000 2,200 Rent NA 40,000 (2,200) 1,890 1,890 NA (750) 5,400 5,400 2,500 2,500 42 43 Particulars 44 45 Started Business with cash 46 Paid Rent 47 Purchased Office Equipment 48 Paid for Cleaning Services 49 Services provided for cash 50 Services provided on Credit 51 Paid Salaries 52 Received from Accounts Receivable 53 Services provided on Credit 54 Received from Accounts Receivable 55 Paid Accounts Payable 56 Purchased Office Equipment 57 Paid Salaries 58 Paid Telephone Bill 59 Paid Utilities 60 Paid Dividend 61 Total (750) 2,500 (2,500) 3,200 (3,200) 3.200 3,200 (1,890) 750 Cleaning Services NA NA 750 Salaries NA NA NA NA NA 750 Salaries 300 Telephone Bill 200 Utilities NA (1,890) 80 (750) (300) (200) (1,400) 42.860 1,400 1,400 + + 1,970 = 80 + 40,000 - 11,100 - 4,950 44,830 44,830