Question

Saved work G 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 $41,500 cash in the company. 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 $740 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 $2,800 of consulting services for a client on credit. 15 The company paid $790 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 $3,300 of consulting services on credit. 25 The company received $3,300 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 $80 of office equipment on credit. 28 The company paid $790 cash for an assistant's salary for the second half of this month. 30 The company paid $400 cash for this month's telephone bill. 30 The company paid $250 cash for this month's utilities. 31 G. Gram withdrew $2,000 cash from the company for personal use. 2-a. Prepare income statement for May. 2-b. Prepare statement of owner's equity for May. 2-c. Prepare Balance Sheet for May 31. 3. Prepare statement of cash flows for May. Complete this question by entering your answers in the tabs below. CAP 18 < Prev of 19 Next >

Can someone help me with this transaction

Answer 1

The GRAM CO. IncoME STATEMENT FOR THE MONTH ENDED 315 MAY Revenues Consuting services 5400 Consulting services 2800 Consulting Services 3300 Expenses Rent 2200 office equipment 1890 1740 cleanuy services S 1580 Expenditure 80 Telephone bill 400 utilitus 250 Total 7140 pro 115oo Excess of Income over expenditure = 4,360

The GRAM CO. Statement of Owner's requity G. Gram Capital, May 13 Introduced Capital 41.500 Add Income 4,360 Less: Drawing 2,000 G. Gram, Capital, May 31 43,860

The GRAM CO. Balance Sheet May 31 Amounts LIABILITIES 43,940 Creditor Amounts ASSETS Cash Accounts Recievable 80 Equity Capital 43,860 43,940 43,940

The GRAM CO. Statement of Cash Flows for the month May 31 Cash How from Operating Activitin & Amount El Capital Introduced 41,500 Reut paid (2200) paid for cleaning Services (740) Cash collected from Consulting suoo Paid salary (1580) Cash recieved from Consulting 2800 Paid for office equipment (1890) paid Telephone Bill (400) paid udilitus (so) to Drawing Cach How from all activus 143940 3300 (2000)

Income statement has office equipment in expense which should not be there you just delete that office equipment then your new income will be the correct income.

Then you just need to pass on the total to equity and then you have to show that office equipment in blanace sheet on Asset side.

I have mistakenly take the office equipment as an expense it is actually an asset for the company.

Cash flow statement: in this office equipment cost has to be moved from the operating activities to investing activities.

Sorry for the wrong answer hope now you get it.