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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.

May		1		G. Gram invested $42,000 cash in the company in exchange for its common stock.
		1		The company rented a furnished office and paid $2,300 cash for May’s rent.
		3		The company purchased $4,890 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 $5,500 cash.
		12		The company provided $2,400 of consulting services for a client on credit.
		15		The company paid $710 cash for an assistant’s salary for the first half of this month.
		20		The company received $2,400 cash payment for the services provided on May 12.
		22		The company provided $3,700 of consulting services on credit.
		25		The company received $3,700 cash payment for the services provided on May 22.
		26		The company paid $4,890 cash for the office equipment purchased on May 3.
		27		The company purchased $85 of advertising in this month’s (May) local paper on credit; cash payment is due June 1.
		28		The company paid $710 cash for an assistant’s salary for the second half of this month.
		30		The company paid $350 cash for this month’s telephone bill.
		30		The company paid $290 cash for this month’s utilities.
		31		The company paid $1,600 cash in dividends to the owner (sole shareholder).

Required information [The following information applies to the questions displayed below.] 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 $42,000 cash in the company in exchange for its common stock. 1 The company rented a furnished office and paid $2,300 cash for May's rent. 3 The company purchased $4,890 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 $5,500 cash. 12 The company provided $2,400 of consulting services for a client on credit 15 The company paid $710 cash for an assistant's salary for the first half of this month 20 The company received $2,400 cash payment for the services provided on May 12. 22 The company provided $3,700 of consulting services on credit, 25 The company received $3,700 cash payment for the services provided on May 22. 26 The company paid $4,890 cash for the office equipment purchased on May 3. 27 The company purchased $85 of advertising in this month' s (May) local paper on credit; cash payment is due June 28 The company paid $710 cash for an assistant's salary for the second half of this month 30 The company paid $350 cash for this month's telephone bill. 30 The company paid $290 cash for this month's utilities. 31 The company paid $1,600 cash in dividends to the owner (sole shareholder).

Answer 1

Incoma Statement for the month ended May 31 (in Dollars) c) Balance Sheet as at 31, May (in dollars) Statement of Cash Flows for the month ended May 31(in $) Consulting services revcnuc Ofticc Equipment 4890 Advcrtising cxpcnsc payablc Net Income Expenscs Rent Expense Advertising Expense Clcaning Expensc Salaries Expense Telephuie Experise Utilities Expense Equity Advcrtising cxpensc payablc 2300 05 750 1420 Cash provided by operating Activities Corinun Stork Retained Earnings 42000 649 Cash Flow from 46890 46890 290 Purchase of equipment 519 Total Expenses Net Income Cash 42000-2300-750+5500-710-2400-3700-4890-710-350-290-1600 Cash used In Investing activitles 6405 Cash Statement of Retained Earnings (in dollars) Issuanice of Common Stock Dividend paid Retained earnines, May 1 Add: Net Intome Less Dividend Cash provided by Financing Activities Retained earnings, May 31 4805 Net Increase in Cash Opening Cash Closing Cash Nil