May 1 G. Gram invested $40,000 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 $750 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 $2,500 of consulting services for a client on credit. 15 The company paid $750 cash for an assistant's salary for the first half of this month. 20 The compay received $2,500 cash payment for the services provided on May 12. 22 The company provided $3,200 of consulting services on credit. 25 The company received $3,200 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 $750 cash for an assistant's salary for the second half of this month. 30 The compay paid $300 cash for this month's telephone bill. 30 The company paid $280 cash for this month's utilities. 31 G. Gram withdrew $1,400 cash from the company for personal use. Required 1. Create the following table similar to the one in Exhibit 1.9. Assets Liabilities Equity Date Cash Accounts + Office Accounts G. Gram, G. Gram, + Revenues Expenses + Receivable Equipment Payable Capital Withdrawals Enter the effects of each transaction on the accounts of the accounting equation by recording dollar increases and decreases in the appropriate columns. Do not determine new account balances after each transaction. Determine the final total for each account and verify that the equation is in balance. 2. Prepare the income statement and the statement of owner's equity for the month of May, and the bal- ance sheet as of May 31. 3. Prepare the statement of cash flows for the month of May.
May 1 G. Gram invested $40,000 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 $750 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 $2,500 of consulting services for a client on credit. 15 The company paid $750 cash for an assistant's salary for the first half of this month. 20 The compay received $2,500 cash payment for the services provided on May 12. 22 The company provided $3,200 of consulting services on credit. 25 The company received $3,200 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 $750 cash for an assistant's salary for the second half of this month. 30 The compay paid $300 cash for this month's telephone bill. 30 The company paid $280 cash for this month's utilities. 31 G. Gram withdrew $1,400 cash from the company for personal use. Required 1. Create the following table similar to the one in Exhibit 1.9. Assets Liabilities Equity Date Cash Accounts + Office Accounts G. Gram, G. Gram, + Revenues Expenses + Receivable Equipment Payable Capital Withdrawals Enter the effects of each transaction on the accounts of the accounting equation by recording dollar increases and decreases in the appropriate columns. Do not determine new account balances after each transaction. Determine the final total for each account and verify that the equation is in balance. 2. Prepare the income statement and the statement of owner's equity for the month of May, and the bal- ance sheet as of May 31. 3. Prepare the statement of cash flows for the month of May.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
Transcribed Image Text:May 1 G. Gram invested $40,000 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 $750 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 $2,500 of consulting services for a client on credit.
15 The company paid $750 cash for an assistant's salary for the first half of this month.
20 The compay received $2,500 cash payment for the services provided on May 12.
22 The company provided $3,200 of consulting services on credit.
25 The company received $3,200 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 $750 cash for an assistant's salary for the second half of this month.
30 The compay paid $300 cash for this month's telephone bill.
30 The company paid $280 cash for this month's utilities.
31 G. Gram withdrew $1,400 cash from the company for personal use.
Transcribed Image Text:Required
1. Create the following table similar to the one in Exhibit 1.9.
Assets
Liabilities
Equity
Date
Cash
Accounts +
Office
Accounts
G. Gram,
G. Gram,
+ Revenues
Expenses
+
Receivable
Equipment
Payable
Capital
Withdrawals
Enter the effects of each transaction on the accounts of the accounting equation by recording dollar
increases and decreases in the appropriate columns. Do not determine new account balances after each
transaction. Determine the final total for each account and verify that the equation is in balance.
2. Prepare the income statement and the statement of owner's equity for the month of May, and the bal-
ance sheet as of May 31.
3. Prepare the statement of cash flows for the month of May.
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