Problem 1-7A (Algo) Analyzing transactions and preparing financial statements LO P1, P2 Skip to question...
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Accounting
Problem 1-7A (Algo) Analyzing transactions and preparing financial statements LO P1, P2
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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 $44,500 cash in the company in exchange for its common stock.
May 1
The company rented a furnished office and paid $2,300 cash for Mays rent.
May 3
The company purchased $1,890 of equipment on credit.
May 5
The company paid $750 cash for this months cleaning services.
May 8
The company provided consulting services for a client and immediately collected $5,300 cash.
May 12
The company provided $2,500 of consulting services for a client on credit.
May 15
The company paid $730 cash for an assistants 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 $3,500 of consulting services on credit.
May 25
The company received $3,500 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 $85 of equipment on credit.
May 28
The company paid $730 cash for an assistants salary for the second half of this month.
May 30
The company paid $350 cash for this months telephone bill.
May 30
The company paid $300 cash for this months utilities.
May 31
The company paid $1,700 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.
3. Prepare the statement of cash flows for May.
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