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

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.

 

May 1 G. Gram invested $41,000 cash in the company in exchange for its common stock.

1 The company rented a furnished office and paid $2,600 cash for May’s rent.

3 The company purchased $1,940 of office equipment on credit.

5 The company paid $740 cash for this month’s cleaning services.

8 The company provided consulting services for a client and immediately collected $5,200 cash.

12 The company provided $2,600 of consulting services for a client on credit.

15 The company paid $720 cash for an assistant’s salary for the first half of this month.

20 The company received $2,600 cash payment for the services provided on May 12 .

22 The company provided $3,400 of consulting services on credit.

25 The company received $3,400 cash payment for the services provided on May 22 .

26 The company paid $1,940 cash for the office equipment purchased on May 3 .

27 The company purchased $80 of office equipment on credit.

28 The company paid $720 cash for an assistant’s salary for the second half of this month.

30 The company paid $400 cash for this month’s telephone bill.

30 The company paid $270 cash for this month’s utilities.

31 The company paid $1,400 cash in dividends to the owner (sole shareholder).

2-a. Prepare income statement for May.

2-b. Prepare statement of retained earnings for May.

2-c. Prepare balance sheet for May 31 .

3. Prepare statement of cash flows for May.

THE GRAM CO. Statement of Cash Flows For Month Ended May 31 Cash flows from operating activities Cash flows from investing acRequired information [The following information applies to the questions displayed below.] Gabi Gram started The Gram Co., aTHE GRAM CO. Balance Sheet May 31 Assets Liabilities Cash $ 11,200 Equity Total equity 11,200 Total liabilities and equity ToTHE GRAM CO. Statement of Retained Earnings For Month Ended May 31 Retained earnings, May 1 $ Add: Net income 0 Retained earnTHE GRAM CO. Income Statement For Month Ended May 31 Revenues: [Consulting services revenue Expenses Salaries expense 1,440 7


 


The post 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 appeared first on nursing assignment tutor.

 

"Is this question part of your assignment? We Can Help!"

Essay Writing Service