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 $43,000 cash in the company.
		1		The company rented a furnished office and paid $2,100 cash for Mays rent.
		3		The company purchased $1,930 of office equipment on credit.
		5		The company paid $750 cash for this months cleaning services.
		8		The company provided consulting services for a client and immediately collected $5,500 cash.
		12		The company provided $3,000 of consulting services for a client on credit.
		15		The company paid $780 cash for an assistants salary for the first half of this month.
		20		The company received $3,000 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 $1,930 cash for the office equipment purchased on May 3.
		27		The company purchased $80 of office equipment on credit.
		28		The company paid $780 cash for an assistants salary for the second half of this month.
		30		The company paid $350 cash for this months telephone bill.
		30		The company paid $280 cash for this months utilities.
		31		G. Gram withdrew $2,000 cash from the company for personal use.

THE GRAM CO.
Statement of Cash Flows
For Month Ended May 31
Cash flows from operating activities
		$0
Cash flows from investing activities
		0
Cash flows from financing activities
		0
		$0
Cash balance, May 1		0
Cash balance, May 31		$0

THE GRAM CO. Balance Sheet May 31 Liabilities Accounts payable 6,200 2,010 Equity $ Assets Cash Accounts receivable Office equipment 1,930 Total assets $ 8,210 Total liabilities and equity $ 1,930 THE GRAM CO. Statement of Owner's Equity For Month Ended May 31 G. Gram, Capital, May 1 Add: Investment by Owner Less: Withdrawals by Owner $ 0 43,000 2,000 45,000 41,000 4,000 G. Gram, Capital, May 31 $ THE GRAM CO. Income Statement For Month Ended May 31 Revenues: Expenses Rent expense Cleaning expense $ 2,100 750 Telephone expense 350 Utilities expense 280 Total expenses Net income 3,480 37,510 $