Answer Happy

Problem 1-7A (Static) Analyzing transactions and preparing financial statements LO P1, P2 [The following information applies to the questions displayed below.) Gabi Gram started The Gram Company, a new business that began operations on May 1. The Gram Company 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. May 1 The company rented a furnished office and paid $2,200 cash for May's rent. May 3 The company purchased $1,890 of equipment on credit. May 5 The company paid $750 cash for this month's cleaning services. May 8 The company provided consulting services for a client and immediately collected $5,400 cash. May 12 The company provided $2,500 of consulting services for a client on credit. May 15 The company paid $750 cash for an assistant's salary for the first half of this month. May 20 The company received $2,500 cash payment for the services provided on May 12. May 22 The company provided $3,200 of consulting services on credit. May 25 The company received $3,200 cash payment for the services provided on May 22. May 26 The company paid $1,890 cash for the equipment purchased on May 3. May 27 The company purchased $80 of equipment on credit. May 28 The company paid $750 cash for an assistant's salary for the second half of this month. May 30 The company paid $300 cash for this month's telephone bill. May 30 The company paid $280 cash for this month's utilities. May 31 The company paid $1,400 cash in dividends to the owner (sole shareholder).
Revenues: Consulting services revenue Accounts receivable Accounts receivable Expenses Rent expense Cleaning expense Salaries expense Selling, general and administrative expenses Telephone expense Utilities expense THE GRAM COMPANY Income Statement For Month Ended May 31 Total expenses Net income X $ 2,200 750 750 X 750 300 280 $ $ 5,400 2,500 x 3,200 X 5,030 6,070
THE GRAM COMPANY Statement of Retained Earnings For Month Ended May 31 Retained earnings, May 1 Retained earnings, May 31 $ $ 0 0 0
Prepare the balance sheet for May 31. Total assets Assets $ THE GRAM COMPANY Balance Sheet May 31 0 Liabilities Equity Total equity Total liabilities and equity 0 0
THE GRAM COMPANY Statement of Cash Flows For Month Ended May 31 Cash flows from operating activities Cash flows from investing activities $ 0
Cash flows from investing activities Cash flows from financing activities Cash balance, May 1 Cash balance, May 31 $ $ 0 0 0 0 0