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 $41,000 cash in the company in exchange for its common stock. 1 The company rented a furnished office and paid $2,200 cash for May's rent. 3 The company purchased $1,900 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 $5,600 cash. 12 The company provided $2,600 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 $2,600 cash payment for the services provided on May 12. 22 The company provided $3,000 of consulting services on credit. 25 The company received $3,000 cash payment for the services provided on May 22. 26 The company paid $1,900 cash for the office equipment purchased on May 3. 27 The company purchased $85 of office equipment on credit. 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 The company paid $1,800 cash in dividends to the owner (sole shareholder). Assets Liabilities + Equity Cash + Accounts Receivable + Office Equipment Accounts Payable + Common Stock Dividends + Revenues Expenses Account Titles for Expenses 1 + + = + $ 41,000 + NA $ 41,000 |(2,200) + + + + 2,200 Rent 3 + + 1,900 = 1,900 + + NA 01 + + = + + 750 Cleaning (750) 5,600 8 + + + + NA 5,600 2,600 12 + 2,600 + + + NA 15 + + + + (720) 720 X Salary 20 2,600 + + + + NA 22 + (2,600) 3,000 (3,000) + = + + 3,000 NA 25 + + = + + NA 3,000 (1,900) 26 + + (1,900) + + NA 27 + + 85 + + 85 NA 28 + + = + + 750 Salary Telephone 30 + + + + 300 30 + + + + 280 Utilities (750) (300) (280) |(1,800) $ 43,500 31 + + + 1,800 + NA + $ 0 + $ 1,900 = 85 + $ 41,000 $ 1,800 + $ 11,200 $ 5,085