Problem 1-7A Analyzing transactions and preparing financial statements LO C4, 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 following transactions during its first month of operations May 1 G. Gram invested $43,500 cash in the company in exchange for its common stock. 1 The company rented a furnished office and paid $2,300 cash for May's rent.. 3 The company purchased $1,860 of office equipment on credit. 5 The company paid $740 cash for this month's cleaning services 8 The company provided consulting services for a client and immediately collected $5,300 cash 12 The company provided $2,400 of consulting services for a client on credit. 15 The company paid $720 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 $3,100 of consulting services on credit. 25 The company received $3,100 cash payment for the services provided on May 22 26 The company paid $1,860 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 $720 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 The company paid $1,500 cash in dividends to the owner (sole shareholder) Problem 1-7A Part 2 Required 2. Enter the amount of each transaction on individual items of the accounting equation. Do not determine new account balances after each transaction. (Enter the transactions in the given order. Enter reductions to account balances with a minus sign.) Equity Liabilities + Assets Accounts Receivable Accounts Payable Office Equipment Commorn Stock -DividendsRevenuesExpenses Date Cash+ May 1 12 15 20 25 26 27 28 0 31 Problem 1-7A Part 3 3-a. Prepare income statement for May. THE GRAM CO Income Statement For Month Ended May 31 Revenues Expenses Total expenses 3-b. Prepare statement of retained earnings for May THE GRAM CO. Statement of Retained Earnings For Month Ended May 31 Retained earnings, May 1 Retained earnings, May 31 3-c. Prepare Balance Sheet for May 31 THE GRAM CO. Balance Sheet May 31 Assets Liabilities Equity Total assets Total liabilities and equity