Question

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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 $43,500 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.

THE GRAM CO.

Income Statement

For Month Ended May 31

THE GRAM CO.

Statement of Owner's Equity

For Month Ended May 31

THE GRAM CO

Balance Sheet

May 31

THE GRAM CO.

Statement of Cash Flows

For Month Ended May 31

Answer 1

Answer

The Gram Co.
Income Statement
For Month Ended May 31
Revenue	Amount
Consulting Services	11,600.00
Expenses
Salary expense (780+780)	1,560.00
Cleaning expense	800.00
Rent expense	2,400.00
Telephone expense	350.00
Utilities expense	270.00
Net Income	6,220.00

The Gram Co.
Statement of Owners Equity
For Month Ended May 31
Opening Capital on May 1	0
Add: Investment in Month	43,500.00
Net Income	6,220.00
Less: Withdrawals in the Month	1,500.00
Closing Capital , May 31	48,220.00

The Gram Co.
Balance Sheet
For the Month Ended May 31
Liabilities	Amount	Assets	Amount
Equity		Cash	46,330.00
G. Gram Capital	48,220.00	Office Equipment	1,980.00
Accounts Payable	90.00
	48,310.00		48,310.00

The Gram Co.
Statement of Cassh Flows
For Month Ended May 31
Particulars	Amount in $	Amount in $
Cash Flow from operating Activities
Cash received from Customers	11,600.00
Cash paid for Rent	2,400.00
Cash Paid for Cleaning	800.00
Cash Paid for telephone	350.00
Cash paid for Utilities	270.00
Cash paid to employees	1,560.00
Net cash Flow from operating Activities		6,220.00
Cash Flow from Investing Activities
Payment for purchase of equipment	(1,890.00)
Net Cash Flow from Investing Activities		(1,890.00)
Cash Flow from financing Activities
Proceeds from Investment	43,500.00
Withdrawals by owner	(1,500.00)
Net Cash Flow from financing Activities		42,000.00
Net Cash Flow		46,330.00
Opening balance, May 1		0
Closing Balance, May 31		46,330.00

Working Notes:

Date in May Month	1	1	3	5	8	12	15	20	22	25	26	27	28	30	30	31	Total
Cash	43,500.00	(2,400.00)		(800.00)	5,200.00		(780.00)	2,500.00		3,900.00	(1,890.00)		(780.00)	(350.00)	(270.00)	(1,500.00)	46,330.00
Accounts Receivable						2,500.00		(2,500.00)	3,900.00	(3,900.00)							-
Office equipment			1,890.00									90.00					1,980.00
Accounts payable			1,890.00								(1,890.00)	90.00					90.00
G. Gram Capital	43,500.00																43,500.00
G. Gram withdrawals																1,500.00	1,500.00
revenue					5,200.00	2,500.00			3,900.00								11,600.00
Expenses		2,400.00		800.00			780.00						780.00	350.00	270.00		Add a comment Know the answer? Add Answer to: [The following information applies to the questions displayed below.] Gabi Gram started The Gram Co., a... Your Answer: Post as a guest Your Name: What's your source? Earn Coins Coins can be redeemed for fabulous gifts. Log In Sign Up Post as anonymous Post Your Answer Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free. Similar Homework Help Questions 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. 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