Question

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 this month’s cleaning services.
		8		The company provided consulting services for a client and immediately collected $5,200 cash.
		12		The company provided $2,500 of consulting services for a client on credit.
		15		The company paid $780 cash for an assistant’s salary 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 $3,900 of consulting services on credit.
		25		The company received $3,900 cash payment for the services provided on May 22.
		26		The company paid $1,890 cash for the office equipment purchased on May 3.
		27		The company purchased $90 of office equipment on credit.
		28		The company paid $780 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 $270 cash for this month’s utilities.
		31		G. Gram withdrew $1,500 cash from the company for personal use.

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" if the transaction does not include an expense.)

Answer 1

Date	Assets			Liabilities	equity		Revenue	expenses
May	Cash	Accounts receivable	office equipment	accounts payable	Gabi Gram capital	Gabi Gram withdrawals
1	$43500				$43500
1	($2400)							($2400)
3			$1890	$1890
5	($800)							($800)
8	$5200						$5200
12		$2500					$2500
15	($780)							($780)
20	$2500	($2500)
22		$3900					$3900
25	$3900	($3900)
26	($1890)			($1890)
27			$90	$90
28	($780)							($780)
30	($350)							($350)
30	($270)							($270)
31	($1500)					($1500)
	$46330	0	$1980	$90	$43500	($1500)	$11600	($5380)