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.
1 The company rented a furnished office and paid $2,200 cash for May€™s rent.
3 The company purchased $1,890 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 $5,400 cash.
12 The company provided $2,500 of consulting services for a client on credit.
15 The company paid $750 cash for an assistant€™s salary for the first half of this month.
20 The company received $2,500 cash payment for the services provided on May 12.
22 The company provided $3,200 of consulting services on credit.

25 The company received $3,200 cash payment for the services provided on May 22.
26 The company paid $1,890 cash for the office equipment purchased on May 3.
27 The company purchased $80 of advertising in this month€™s (May) local paper on credit; cash payment is due June 1.
28 The company paid $750 cash for an assistant€™s salary for the second half of this month.
30 The company paid $300 cash for this month€™s telephone bill.
30 The company paid $280 cash for this month€™s utilities.
31 G. Gram withdrew $1,400 cash from the company for personal use.

Required
1. Create the following table similar to the one in Exhibit 1.9.

EXHIBIT 1.9: Summary of Transactions Using the Accounting Equation

Enter the effects of each transaction on the accounts of the accounting equation by recording dollar increases and decreases in the appropriate columns. Do not determine new account balances after each transaction. Determine the final total for each account and verify that the equation is in balance.
2. Prepare the income statement and the statement of owner€™s equity 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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Liabilities Equity Assets Date G. Gram, G. Gram, Expenses Cash Accounts Accounts + Revenues Office Receivable Equipment Payable Capital Withdrawals Assets Llabilitles Equity + Supplies + Equlpment + C. Taylor, Capital C. Taylor, + Revenues = Accounts Payable Cash + Accounts Expenses Recelvable Withdrawals (1) $30,000 (2) - 2,500 $30,000 + $2,500 Bal. 27,500 2,500 30,000 (3) -26,000 + $26,000 Bal. 1,500 2,500 26,000 30,000 (4) + 7,100 +$7,100 Bal. 1,500 9,600 26,000 7,100 30,000 (5) + 4,200 + $4,200 Bal. 5,700 9,600 26,000 7,100 30,000 4,200 (6) 1,000 $1,000 Bal. 4,700 9,600 26,000 7.100 30,000 4,200 1,000 (7) 700 700 Bal. 4,000 9,600 26,000 7,100 30,000 4,200 1,700 (8) + $1,900 1,600 300 Bal. 4,000 + 1,900 9,600 26,000 7,100 30,000 6,100 1,700 (9) + 1,900 - 1,900 Bal. 5,900 + 9,600 26,000 7,100 30,000 6,100 1,700 (10) 900 - 900 Bal. 5,000 + 9,600 26,000 6,200 30,000 6,100 1,700 (11) 200 $200 Bal. $ 4,800 + $ + $9,600 + $ 26,000 $6,200 + $ 30,000 $ 200 + $6,100 $ 1,700 I|||