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.

Required 

1. Create the following table similar to Exhibit 1.9. Enter the effects of each transaction on the accounts of the accounting equation by recording dollar increases and decreases in the appropriate columns. Determine the final total for each account and verify that the equation is in balance.

Data from Exhibit 1.9

2. Prepare the income statement and the statement of retained earnings for the month of May, and the balance sheet as of May 31.
3. Prepare the statement of cash flows for the month of May.