80.2K

Verified Solution

Link Copied!

Required information Problem 1-7A (Algo) Analyzing transactions and preparing financial statements LO P1, P2 [The following information applies to the questions displayed below] 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. Kay 1 G. Cran invested $43,000 cash in the conpany in exchange for its eonmon stock. May 1 The conpany rented a furnished oftice and paid $2,400 eanh for May'a rent. May 3 The eorpany purehased $1,860 of equipment on eredit. May 5 the company paid $750 cahh tor thin month' eleaning serviees. May 8 the eompany provided consuy ing servicen for a ellent and imnediately collected 55,300 cash. May 12 The company provided $2,70d of consulting bervices for a olient on eredit, May 15 The cospany paid $770 eash for an assintant's salary for the firot bolf of thin month. May 20 The conpany received 52,700 cash paystent for the nervicen provided on May 12 . May 22 the eospany provided $3,400 of consulting services on eredit. Kay 25 the coopany received $3,400 cash payment for the sorvieen provided on May 22. May 26 the coepany paid $1,060 cash for the equipeest purehased on May 3 . May 27 the company purehased $75 of equiphent on eredit. May 21 The conpany pald $770 eash for an assintant' salary for the second half of this month. May 30 the ecompany paid 5400 cash for thin nonth' telephone bili. May 30 the company paid 3260 eash for thio nonth'a utilitien. May 31 the conpany paid $1,000 canh in dividend to the owner (hote ohareholder). 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. Complete this question by entering your answers in the tabs below. Prepare the income statement for May. Complete this question by entering your answers in the tabs below. Prepare the statement of retained earnings for May. Complete this question by entering your answers in the tabs below. Prepare the balance sheet for May 31. (1) Required information

Answer & Explanation Solved by verified expert

See Answer