Question

Ch1 Homework Assignment Help Save & Exit Submit Check my work 12 Required information Problem 1-7A Analyzing transactions and preparing financial statements LO C4, P1, P2 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 Part 2 of 2 points transactions during its first month of operations. Nay 1 G. Gran invested $40,000 cash in the conpany in exchange for its common atock 1 The conpany rented a furnished office and paid $2,200 cash for May's rent 3 The conpany purchased 1,890 of office equipnent on credit 5 The company paid $750 cash for this north's cleaning ยervices 8 The conpany provided consulting ervices for a olient and innediately collected $5,400 cash 12 The conpany provided $2,500 of consulting eervices for a client on credit 15 The conpany paid $750 cash for an assistant's salary for the firet half of this month 20 The conmpany received $2,500 cash payment for the services provided on May 12 22 The conpany provided 3,200 of consulting services on eredit 25 The conpany received 3,200 cash payment for the servicee provided on May 22 26 The conpany paid 1,890 cash for the office equipnent purchased on May 3 27 The company purchased $80 of advertising in this nonth'8 (May》 local paper on credit; cash payment is References 28 The conpany paid $750 cash for an assistant '8 salary for the second half of this month 30 The conpany paid $300 cash for this onth s telephone bill 30 The conpany paid $280 cash for this nonth s uilities 31 The conpany paid s1,400 cash in dividends to the owner (sole shareholder Problem 1-7A Part 2 and 3 2.1 Prepare income statement for May. THE GRAM CO. Income Statement For Month Ended May 31 <Prev 12 of 17 Next >

Help me with the statement of cash flows.

Answer 1

1)
THE GRAM CO.
Income Statement
For Month Ended May 31
Revenues:		$                          11,100.00
Consulting services revenue
Expenses	$      300.00
Telephone expense	$      750.00
Cleaning expense	$      280.00
Utilities expense	$        80.00
Advertising expense	$   2,200.00
Rent expense	$   1,500.00
Salaries expense		$                            5,110.00
Total expenses
Net income		$                            5,990.00
2)
THE GRAM CO.
Statement of Owner's Equity
For the Month Ended May 31
H. Graham, Capital, May 1
Add: Investment by Owner	$ 40,000.00
Net Income	$   5,990.00
	$ 45,990.00
Less: Cash Dividend paid	$   1,400.00
H. Graham, Capital, May 31	$ 44,590.00
3)
THE GRAM CO.
Balance Sheet
Assets		Liabilities
Cash	42780	Accounts Payable	80
Office Equipment	1890	Owner's Equity
		H. Graham, Capital, May 31	$ 44,590.00
Total Assets	$ 44,670.00	Total liabilities and equity	$ 44,670.00
THE GRAM CO.
Statement of Cash Flows
For Month Ended May 31
Cash flows from operating activities
Cash received from customers	$ 11,100.00
Cash Paid for rent	$ -2,200.00
Cash Paid for cleaning	$    -750.00
Cash Paid for telephone	$    -300.00
Cash Paid for utilities	$    -280.00
Cash Paid to employees	$ -1,500.00
Net cash provided by operating activities		$                            6,070.00
Cash flows from investing activities
Purchase of Equiment	$ -1,890.00
Net cash used by investing activities		$                           -1,890.00
Cash flows from financing activities
Investment by Owner	$ 40,000.00
Cash Dividend	$ -1,400.00
Net cash provided by financing activities		$                          38,600.00
Net Increase in Cash		$                          42,780.00
Cash balance, May 1		$                                       -
Cash balance, May 31		$                          42,780.00