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 Gabi Gram invested $40,000 cash in the company. 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 Gabi Gram withdrew $1,400 cash from the company for personal use. 2-a. Prepare the income statement for May. 2-b. Prepare the statement of owner's equity for May. 2-c. Prepare the balance sheet for May 31. 3. Prepare the statement of cash flows for May.
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 Gabi Gram invested $40,000 cash in the company. 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 Gabi Gram withdrew $1,400 cash from the company for personal use. 2-a. Prepare the income statement for May. 2-b. Prepare the statement of owner's equity for May. 2-c. Prepare the balance sheet for May 31. 3. Prepare the statement of cash flows for May.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 Gabi Gram invested $40,000 cash in the company.
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 Gabi Gram withdrew $1,400 cash from the company for personal use.
2-a. Prepare the income statement for May.
2-b. Prepare the statement of owner's equity for May.
2-c. Prepare the balance sheet for May 31.
3. Prepare the statement of cash flows for May.
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