Problem 1-7A Analyzing transactions and preparing financial statements LO P1, P2

Complete this question by entering your answers in the tabs below. Required 2A Required 2B Required 2c Required 3 Prepare income statement for May. THE GRAM CO. Income Statement For Month Ended May 31 Revenues Consulting services revenue 10,900 Expenses Rent expense Salaries expense Telephone expense Cleaning expense Utilities expense 2,500 1,580 350 750 270 Total expenses Net income 5,450 6,000 $ Required 2A Required 2B > Required information Problem 1-7A Analyzing transactions and preparing financial statements LO 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 $42,000 cash in the company in exchange for its common stock. 1 The company rented a furnished office and paid $2,500 cash for May's rent. 3 The company purchased $1,880 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 $5,200 cash. 12 The company provided $2,400 of consulting services for a client on credit. 15 The company paid $790 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 $3,700 of consulting services on credit. 25 The company received $3,700 cash payment for the services provided on May 22. 26 The company paid $1,880 cash for the office equipment purchased on May 3. 27 The company purchased $90 of office equipment on credit. 28 The company paid $790 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 $270 cash for this month's utilities. 31 The company paid $1,800 cash in dividends to the owner (sole shareholder). Problem 1-7A Part 2 and 3 2-a. Prepare income statement for May. 2-b. Prepare statement of retained earnings for May. 2-c. Prepare balance sheet for May 31. 3. Prepare statement of cash flows for May. Required 2A Required 2B Required 2C Required 3 Prepare statement of retained earnings for May. THE GRAM CO. Statement of Retained Earnings For Month Ended May 31 Retained earnings, May 1 $ Add: Net income 0 0 Less: Dividends Retained earnings, May 31 $ 0 THE GRAM CO. Statement of Cash Flows For Month Ended May 31 Cash flows from operating activities Cash received from customers Cash paid for rent Cash paid for telephone (2,500) (350) -2,850 Cash flows from investing activities 0 Cash flows from financing activities 0 $ -2,850 Cash balance, May 1 Cash balance, May 31 $ -2,850 Required information Problem 1-7A Analyzing transactions and preparing financial statements LO 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 $42,000 cash in the company in exchange for its common stock. 1 The company rented a furnished office and paid $2,500 cash for May's rent. 3 The company purchased $1,880 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 $5,200 cash. 12 The company provided $2,400 of consulting services for a client on credit. 15 The company paid $790 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 $3,700 of consulting services on credit. 25 The company received $3,700 cash payment for the services provided on May 22. 26 The company paid $1,880 cash for the office equipment purchased on May 3. 27 The company purchased $90 of office equipment on credit. 28 The company paid $790 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 $270 cash for this month's utilities. 31 The company paid $1,800 cash in dividends to the owner (sole shareholder). Problem 1-7A Part 2 and 3 2-a. Prepare income statement for May. 2-b. Prepare statement of retained earnings for May. 2-c. Prepare balance sheet for May 31. 3. Prepare statement of cash flows for May. Required 2A Required 2B Required 2C Required 3 Prepare statement of retained earnings for May. THE GRAM CO. Statement of Retained Earnings For Month Ended May 31 Retained earnings, May 1 $ Add: Net income 0 0 Less: Dividends Retained earnings, May 31 $ 0 THE GRAM CO. Statement of Cash Flows For Month Ended May 31 Cash flows from operating activities Cash received from customers Cash paid for rent Cash paid for telephone (2,500) (350) -2,850 Cash flows from investing activities 0 Cash flows from financing activities 0 $ -2,850 Cash balance, May 1 Cash balance, May 31 $ -2,850