- 4 Q Search a Search Problem 1-7A Analyzing transactions and preparing financial statements LO C4, P1, P2 (The following information applies to the questions displayed below.) THE GRAM CO. Income Statement For Month Ended May 31 THE GRAM CO. Balance Sheet May 31 Revenues: 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. Assets Liabilities Expenses Equity Total assets Total liabilities and equity $ May 1 G. Gram invested $43,000 cash in the company. 1 The company rented a furnished office and paid $2,400 cash for May's rent. 3 The company purchased $4,800 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 $5,900 cash. 12 The company provided $2,700 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 $2,700 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 $4,800 cash for the office equipment purchased on May 3. 27 The company purchased $85 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 $350 cash for this month's telephone bill. 30 The company paid $300 cash for this month's utilities. 31 G. Gram withdrew $1,700 cash from the company for personal use. 5 Q Search Total expenses THE GRAM CO. Statement of Cash Flows For Month Ended May 31 Cash flows from operating activities Q Search Answer is complete and correct. Assots Liabilities Accounts Receivable Cash Office Equipment Accounts Payable G Gram, Capital Equity + G. Gram, Withdrawals Revenues Expenses Date May 1 43.000 $ 43,000 0 0 (2.400) 2.400 A 800 4.800 + 0 750 (750) 5.900 Cash flows from investing activities 5.900 2.700 2,700 750 0 (750) 2,700 (2.700) 3,200 (3,200) 3,200 3,200 (4.800) Cash flows from financing activities (4.800) (750) (350) (300) (1.700) 0000 0 30 30 OOOO 300 31 (1.700) (1.700) 43,000 0 + $ 4,800 = $ 85 + $ 43,000 - $ + $ 11,800 - - $ 5,385 Cash balance, May 1 Cash balance, May 31