2-a. Prepare the income statement for May. 2-b. Prepare the statement of retained earnings for May. 2-c. Prepare the balance sheet for May 31.
2-a. Prepare the income statement for May. 2-b. Prepare the statement of retained earnings for May. 2-c. Prepare the balance sheet for May 31.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Hello, could you please help me complete 2a-3? Thank you
It includes an income statement, statement of retained earnings , balance sheet for, and cash flows .
![!
Required information
Date
May 1
May 1
May 3
May 5
May 8
May 12
May 15
May 20
May 22
May 25
May 26
May 27
May 28
May 30
May 30
May 31
Cash +
$41,000 +
(2,100)
+
+
+
3,600 +
(1,850) +
+
Assets
Accounts
Receivable
(770) +
(400) +
(280) +
(1,500) +
$43,990 +
(740) +
5,200 +
+
[1] + 2,600 +
JUL
+
(770) +
2,600+
(2,600) +
3,600 +
(3,600) +
+
+ Equipment
$
+
+
+
+
+
++++
0+ $
=
////////
=
=
1,850=
=
=
=
=
=
=
F
90 =
=
=
1,940 =
Liabilities
Accounts
Payable
$
+
+
+
1,850 +
+
+
+
+
+
+
(1,850) +
90
+
+
+
+
+
90 +
Common
Stock
$
$
41,000 -
-
-
-
-
41,000 - $
$
Equity
Dividends
+
+
+
+
+
+
+
+
+
+
1,500 +
1,500
+.
Revenues
5,200 -
2,600
3,600 -
-
-
-
-
-
Expenses
Account Titles
for Expenses
ΝΑ
2,100 Rent
NA
740 Cleaning
ΝΑ
NA
770 Salary
NA
ΝΑ
ΝΑ
NA
ΝΑ
770 Salary
400 Telephone
280 Utilities
ΝΑ
$ 11,400 $ 5,060](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0fa523ae-1371-4334-b39e-68f431e94a87%2F7b1447ac-3716-4fd8-929c-507183aa3505%2F7780lvse_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required information
Date
May 1
May 1
May 3
May 5
May 8
May 12
May 15
May 20
May 22
May 25
May 26
May 27
May 28
May 30
May 30
May 31
Cash +
$41,000 +
(2,100)
+
+
+
3,600 +
(1,850) +
+
Assets
Accounts
Receivable
(770) +
(400) +
(280) +
(1,500) +
$43,990 +
(740) +
5,200 +
+
[1] + 2,600 +
JUL
+
(770) +
2,600+
(2,600) +
3,600 +
(3,600) +
+
+ Equipment
$
+
+
+
+
+
++++
0+ $
=
////////
=
=
1,850=
=
=
=
=
=
=
F
90 =
=
=
1,940 =
Liabilities
Accounts
Payable
$
+
+
+
1,850 +
+
+
+
+
+
+
(1,850) +
90
+
+
+
+
+
90 +
Common
Stock
$
$
41,000 -
-
-
-
-
41,000 - $
$
Equity
Dividends
+
+
+
+
+
+
+
+
+
+
1,500 +
1,500
+.
Revenues
5,200 -
2,600
3,600 -
-
-
-
-
-
Expenses
Account Titles
for Expenses
ΝΑ
2,100 Rent
NA
740 Cleaning
ΝΑ
NA
770 Salary
NA
ΝΑ
ΝΑ
NA
ΝΑ
770 Salary
400 Telephone
280 Utilities
ΝΑ
$ 11,400 $ 5,060
![Homework i
Required information
Problem 1-7A (Algo) Analyzing transactions and preparing financial statements LO P1, P2
[The following information applies to the questions displayed below.]
Saved
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 $41,000 cash in the company in exchange for its common stock.
May 1 The company rented a furnished office and paid $2,100 cash for May's rent.
May 3 The company purchased $1,850 of equipment on credit.
May 5 The company paid $740 cash for this month's cleaning services.
May 8 The company provided consulting services for a client and immediately collected $5,200 cash.
May 12 The company provided $2,600 of consulting services for a client on credit.
May 15 The company paid $770 cash for an assistant's salary for the first half of this month.
May 20 The company received $2,600 cash payment for the services provided on May 12.
May 22 The company provided $3,600 of consulting services on credit.
May 25 The company received $3,600 cash payment for the services provided on May 22.
May 26 The company paid $1,850 cash for the equipment purchased on May 3.
May 27 The company purchased $90 of equipment on credit.
May 28 The company paid $770 cash for an assistant's salary for the second half of this month.
May 30 The company paid $400 cash for this month's telephone bill.
May 30 The company paid $280 cash for this month's utilities.
May 31 The company paid $1,500 cash in dividends to the owner (sole shareholder).
Problem 1-7A (Algo) Part 2 and 3
2-a. Prepare the income statement for May.
2-b. Prepare the statement of retained earnings for May.
2-c. Prepare the balance sheet for May 31.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0fa523ae-1371-4334-b39e-68f431e94a87%2F7b1447ac-3716-4fd8-929c-507183aa3505%2Fub0wo0r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Homework i
Required information
Problem 1-7A (Algo) Analyzing transactions and preparing financial statements LO P1, P2
[The following information applies to the questions displayed below.]
Saved
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 $41,000 cash in the company in exchange for its common stock.
May 1 The company rented a furnished office and paid $2,100 cash for May's rent.
May 3 The company purchased $1,850 of equipment on credit.
May 5 The company paid $740 cash for this month's cleaning services.
May 8 The company provided consulting services for a client and immediately collected $5,200 cash.
May 12 The company provided $2,600 of consulting services for a client on credit.
May 15 The company paid $770 cash for an assistant's salary for the first half of this month.
May 20 The company received $2,600 cash payment for the services provided on May 12.
May 22 The company provided $3,600 of consulting services on credit.
May 25 The company received $3,600 cash payment for the services provided on May 22.
May 26 The company paid $1,850 cash for the equipment purchased on May 3.
May 27 The company purchased $90 of equipment on credit.
May 28 The company paid $770 cash for an assistant's salary for the second half of this month.
May 30 The company paid $400 cash for this month's telephone bill.
May 30 The company paid $280 cash for this month's utilities.
May 31 The company paid $1,500 cash in dividends to the owner (sole shareholder).
Problem 1-7A (Algo) Part 2 and 3
2-a. Prepare the income statement for May.
2-b. Prepare the statement of retained earnings for May.
2-c. Prepare the balance sheet for May 31.
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