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). Required: 1. Enter the amount of each transaction on individual items of the accounting equation. Note: Enter the transactions in the given order. Enter reductions to account balances with a minus sign. Select "NA" for account titles if the transaction does not include an expense. Date Cash + Assets Accounts Receivable + Equipment = = Liabilities + Accounts Payable Equity + Common Stock Dividends + Revenues Expenses Account Titles for Expenses May 1 $40,000+ + + $ 40,000 + May 1 (2,200) + + = + + 2,200 May 3 + + 1,890 = 1,890 + + May 5 (750) + + + + 750 May 8 5,400 + + = + + 5,400 - May 12 + 2,500 + = + + 2,500 May 15 (750) + + = + + 750 May 20 2,500 + (2,500) + = + + May 22 + 3,200 + = + + 3,200 May 25 3,200 + (3,200) + = + + May 26 (1,890) + + (1,890) + + May 27 + + 80 = 80 + + May 28 (750) + + = + May 30 (300) + + + May 30 (280) + + = + + + 750 300 280 May 31 (1,400) + + + (1,400) + $42,780 + $ 0 $ 1,970 = $ 80 + $ 40,000 I $ (1,400) + $ 11,100 $ 5,030

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). Required: 1. Enter the amount of each transaction on individual items of the accounting equation. Note: Enter the transactions in the given order. Enter reductions to account balances with a minus sign. Select "NA" for account titles if the transaction does not include an expense. Date Cash + Assets Accounts Receivable + Equipment = = Liabilities + Accounts Payable Equity + Common Stock Dividends + Revenues Expenses Account Titles for Expenses May 1 $40,000+ + + $ 40,000 + May 1 (2,200) + + = + + 2,200 May 3 + + 1,890 = 1,890 + + May 5 (750) + + + + 750 May 8 5,400 + + = + + 5,400 - May 12 + 2,500 + = + + 2,500 May 15 (750) + + = + + 750 May 20 2,500 + (2,500) + = + + May 22 + 3,200 + = + + 3,200 May 25 3,200 + (3,200) + = + + May 26 (1,890) + + (1,890) + + May 27 + + 80 = 80 + + May 28 (750) + + = + May 30 (300) + + + May 30 (280) + + = + + + 750 300 280 May 31 (1,400) + + + (1,400) + $42,780 + $ 0 $ 1,970 = $ 80 + $ 40,000 I $ (1,400) + $ 11,100 $ 5,030

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 46P: Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and...

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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).

Required:

1. Enter the amount of each transaction on individual items of the accounting equation.

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).
Required:
1. Enter the amount of each transaction on individual items of the accounting equation.
Note: Enter the transactions in the given order. Enter reductions to account balances with a minus sign. Select "NA" for account
titles if the transaction does not include an expense.
Date
Cash +
Assets
Accounts
Receivable
+ Equipment =
= Liabilities +
Accounts
Payable
Equity
+
Common
Stock
Dividends
+ Revenues Expenses
Account Titles
for Expenses
May 1
$40,000+
+
+
$ 40,000
+
May 1
(2,200) +
+
=
+
+
2,200
May 3
+
+
1,890 =
1,890 +
+
May 5
(750) +
+
+
+
750
May 8
5,400
+
+
=
+
+
5,400
-
May 12
+
2,500 +
=
+
+
2,500
May 15
(750)
+
+
=
+
+
750
May 20
2,500 +
(2,500) +
=
+
+
May 22
+
3,200 +
=
+
+
3,200
May 25
3,200
+
(3,200) +
=
+
+
May 26
(1,890)
+
+
(1,890) +
+
May 27
+
+
80 =
80
+
+
May 28
(750)
+
+
=
+
May 30
(300)
+
+
+
May 30
(280) +
+
=
+
+
+
750
300
280
May 31
(1,400) +
+
+
(1,400) +
$42,780 +
$
0
$
1,970 =
$
80
+
$ 40,000
I
$
(1,400) +
$ 11,100
$ 5,030

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