Question

Saved Problem 1-7A Analyzing transactions and preparing financial statements LO 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 transactions during its first month of operations. 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 $2,100 cash for May's rent. 3 The company purchased $1,920 of office equipment on credit. 5 The company paid $760e cash for this month's cleaning services. 8 The company provided consulting services for a client and immediately collected $5,600 cash. 12 The company provided $2,400 of consulting services for a client on credit. 15 The company paid $790 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 $3,800 of consulting services on credit. 25 The company received $3,800 cash payment for the services provided on May 22. 26 The company paid $1,920 cash for the office equipment purchased on May 3. 27 The company purchased $75 of office equipment on credit. 28 The company paid $790 cash for an assistant's salary for the second half of this month. 30 The company paid $35e cash for this month's telephone bill. 30 The company paid $280 cash for this month's utilities. 31 The company paid $1,800 cash in dividends to the owner (sole shareholder). May blem 1-7A Part 2 and 3 Prepare income statement for May. Prepare statement of retained earnings for May

prepare a balance sheet

Answer 1

с р 1 Credit ($) $ 75 $ 42,000 A в Trial Balance 2 Account Titles Debit ($) 3 Cash $ 45,010 4 Accounts Receviable $ 5 Office Equipment $ 1,995 6 Accounts Payable 7 Common Stock 8 Dividends $ 1,800 9 Service Revenue 10 Salaries Expense $ 1,580 11 Rent Expense $ 2,100 12 Utility Expense $ 1,040 13 Telephone Expense $ 350 14 15 Total $ 53,875 16 Balance Sheet Assets Cash $ 45,010 Accounts Receivable Office Equipment $ 1,995 Total Assets $ 47,005 Liabilities and Stockholder's Equity Accounts Payable $ 75 Common Stock $ 42,000 Retained Earnings $ 4,930 Total Liabilities and Stockholder's Equity | $ 47,005 | $ 11,800 $ 53,875

Credit ($) E Balance Sheet Assets Cash =B3 Accounts Receivable =B4 Office Equipment =B5 Total Assets =SUM(F3:F5) Liabilities and Stockholder's Equity Accounts Payable =C6 Common Stock =C7 Retained Earnings =C9-SUM(B10:B13)-B8 Total Liabilities and Stockholder's Equity 1=SUM(F8:F10) A 1 Trial Balance 2 Account Titles Debit ($) 3 Cash =42000-2100-760+5600-790+2400+3800-1920-790-350-280-1800 4 Accounts Receviable =2400-2400+3800-3800 5 Office Equipment =1920+75 6 Accounts Payable 7 Common Stock 8 Dividends =1800 9 Service Revenue 10 Salaries Expense =790+790 11 Rent Expense =2100 12 Utility Expense =760+280 13 Telephone Expense =350 14 15 Total =SUM(B3:B13) 16 =1920-1920+75 =42000 =5600+2400+3800 =SUM(C3:C13)

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