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 eq...

To complete the accounting tasks laid out in the requirements well need to first record all the transactions in the accounting equation to see how they affect the accounts Then we can prepare the fina ...

Gabi Gram started The Gram Co., a new business that began operations on May 1. The Gram

Question:

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 $40,000 cash in the company in exchange for its common stock.

1 3 5 8 12 15 20 22 25 The company rented a furnished office and paid $2,200 cash for May's rent. The company

26 27 28 30 30 31 The company paid $1,890 cash for the equipment purchased on May 3. The company purchased

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.

Date Cash + Assets Accounts Receivable + Equipment = Liabilities + Accounts + Payable Common Stock Dividends

Data from Exhibit 1.9

(1) $30,000 (2) - 2,500 Bal. 27,500 (3) -26,000 Bal. 1,500 (4) Bal. 1,500 (5) + 4,200 Bal. (6) Bal. Cash (7)

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.

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