60.1K

Verified Solution

Link Copied!

Required information

$[$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.

May $1$ G$.$ Gram invested $$43,000$ cash in the company in exchange for its common stock.

May $1$ The company rented a furnished office and paid $$2,200$ cash for May's rent.

May $3$ The company purchased $$1,900$ of equipment on credit.

May $5$ The company paid $$750$ cash for this month's cleaning services.

May $8$ The coepany provided consulting services for a client and imediately collected $$5,300$ cash.

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

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

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

Hay $22$ The company provided $$3,300$ of consulting services on credit.

May $25$ The company received $$3,300$ cash payment for the services provided on May $22.$

Hay $26$ The company paid $$1,903$ cash for the equipment purchased on May $3.$

May $27$ The company purchased $$75$ of equipment on credit.

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

Hay $30$ The company paid $$350$ cash for this month's telephone bill.

Hoy $30$ The company paid $$309$ cash for this month's utilities.

May $31$ The company paid $$1,600$ cash in dividends to the owner $($sole shareholder$).$

i$)$ Prepare the income statement for May

ii$)$ Prepare the statement of retained earnings for May

iii$)$ Prepare the balance sheet as of May $31$

iv$)$ Prepare the statement of cash flows for the month of May

Answer & Explanation Solved by verified expert

See Answer