Required information [The following information applies to the questions displayed below.] Gabi Gram started The Gram Company, a new business that began operations on May 1. The Gram Company completed the following transactions during its first month of operations. May 1 G. Gran invested $40,000 cash in the company in exchange for its common stock. May 1 The company rented a furnished office and paid $2,200 cash for May's rent. May 3 The company purchased $1,890 of equipment on credit. May 5 The company paid $750 cash for this month's cleaning services. May 8 The company provided consulting services for a client and immediately collected $5,400 cash. May 12 The company provided $2,500 of consulting services for a client on credit. May 15 The company paid $750 cash for an assistant's salary for the first half of this month. May 20 The company received $2,500 cash payment for the services provided on May 12. May 22 The company provided $3,200 of consulting services on credit. May 25 The company received $3,200 cash payment for the services provided on May 22. May 26 The company paid $1,890 cash for the equipment purchased on May 3. May 27 The company purchased $80 of equipment on credit. May 28 The company paid $750 cash for an assistant's salary for the second half of this month. May 30 The company paid $300 cash for this month's telephone bill. May 30 The company paid $280 cash for this month's utilities. May 31 The company paid $1,400 cash in dividends to the owner (sole shareholder). 2-a. Prepare the income statement for May. 2-b. Prepare the statement of retained earnings for May. 2-c. Prepare the balance sheet for May 31. 3. Prepare the statement of cash flows for May. Complete this question by entering your answers in the tabs below. Required 2A Required 2B Required 2C Required 3 Prepare the income statement for May. Revenues Expenses Total expenses THE GRAM COMPANY Income Statement For Month Ended May 31 < Required 2A Required 28 > Complete this question by entering your answers in the tabs below. Required 2A Required 2B Required 2C Prepare the statement of retained earnings for May. THE GRAM COMPANY Statement of Retained Earnings For Month Ended May 31 Retained earnings, May 1 Retained earnings, May 31 $ Prepare the balance sheet for May 31. $ Assets Required 3 Required 2A Required 2B Required 2C 0 0 < Required 2A Complete this question by entering your answers in the tabs below. Required 3 THE GRAM COMPANY Balance Sheet May 31 Total liabilities Required 2C > Total equity Liabilities Equity
Required information [The following information applies to the questions displayed below.] Gabi Gram started The Gram Company, a new business that began operations on May 1. The Gram Company completed the following transactions during its first month of operations. May 1 G. Gran invested $40,000 cash in the company in exchange for its common stock. May 1 The company rented a furnished office and paid $2,200 cash for May's rent. May 3 The company purchased $1,890 of equipment on credit. May 5 The company paid $750 cash for this month's cleaning services. May 8 The company provided consulting services for a client and immediately collected $5,400 cash. May 12 The company provided $2,500 of consulting services for a client on credit. May 15 The company paid $750 cash for an assistant's salary for the first half of this month. May 20 The company received $2,500 cash payment for the services provided on May 12. May 22 The company provided $3,200 of consulting services on credit. May 25 The company received $3,200 cash payment for the services provided on May 22. May 26 The company paid $1,890 cash for the equipment purchased on May 3. May 27 The company purchased $80 of equipment on credit. May 28 The company paid $750 cash for an assistant's salary for the second half of this month. May 30 The company paid $300 cash for this month's telephone bill. May 30 The company paid $280 cash for this month's utilities. May 31 The company paid $1,400 cash in dividends to the owner (sole shareholder). 2-a. Prepare the income statement for May. 2-b. Prepare the statement of retained earnings for May. 2-c. Prepare the balance sheet for May 31. 3. Prepare the statement of cash flows for May. Complete this question by entering your answers in the tabs below. Required 2A Required 2B Required 2C Required 3 Prepare the income statement for May. Revenues Expenses Total expenses THE GRAM COMPANY Income Statement For Month Ended May 31 < Required 2A Required 28 > Complete this question by entering your answers in the tabs below. Required 2A Required 2B Required 2C Prepare the statement of retained earnings for May. THE GRAM COMPANY Statement of Retained Earnings For Month Ended May 31 Retained earnings, May 1 Retained earnings, May 31 $ Prepare the balance sheet for May 31. $ Assets Required 3 Required 2A Required 2B Required 2C 0 0 < Required 2A Complete this question by entering your answers in the tabs below. Required 3 THE GRAM COMPANY Balance Sheet May 31 Total liabilities Required 2C > Total equity Liabilities Equity
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Question
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Required 2A Required 2B Required 2C Required 3
Prepare the statement of cash flows for May. (Cash outflows should be indicated with a minus sign.)
THE GRAM COMPANY
Statement of Cash Flows
For Month Ended May 31
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Cash balance, May 1
Cash balance, May 31
Required 2C
$
69
$
$
0
0
0
0
Required 3
![Required information
[The following information applies to the questions displayed below.]
Gabi Gram started The Gram Company, a new business that began operations on May 1. The Gram Company completed
the following transactions during its first month of operations.
May 1 G. Gram invested $40,000 cash in the company in exchange for its common stock.
May 1 The company rented a furnished office and paid $2,200 cash for May's rent.
May 3 The company purchased $1,890 of equipment on credit.
May 5 The company paid $750 cash for this month's cleaning services.
May 8 The company provided consulting services for a client and immediately collected $5,400 cash.
May 12 The company provided $2,500 of consulting services for a client on credit.
May 15 The company paid $750 cash for an assistant's salary for the first half of this month.
May 20 The company received $2,500 cash payment for the services provided on May 12.
May 22 The company provided $3,200 of consulting services on credit.
May 25 The company received $3,200 cash payment for the services provided on May 22.
May 26 The company paid $1,890 cash for the equipment purchased on May 3.
May 27 The company purchased $80 of equipment on credit.
May 28 The company paid $750 cash for an assistant's salary for the second half of this month.
May 30 The company paid $300 cash for this month's telephone bill.
May 30
The company paid $280 cash for this month's utilities.
May 31 The company paid $1,400 cash in dividends to the owner (sole shareholder).
2-a. Prepare the income statement for May.
2-b. Prepare the statement of retained earnings for May.
2-c. Prepare the balance sheet for May 31.
3. Prepare the statement cash flows for May.
Complete this question by entering your answers in the tabs below.
Required 2A Required 2B
Prepare the income statement for May.
Revenues:
Expenses
Required 2C
Total expenses
Required 3
THE GRAM COMPANY
Income Statement
For Month Ended May 31
Required 2A
Required 2B >
Complete this question by entering your answers in the tabs below.
Required 2A Required 2B
Retained earnings, May 1
Prepare the statement of retained earnings for May.
THE GRAM COMPANY
Statement of Retained Earnings
For Month Ended May 31
Retained earnings, May 31
Required 2A
Required 2C
Required 2B
Total assets
Prepare the balance sheet for May 31.
Assets
$
$
Required 3
Complete this question by entering your answers in the tabs below.
Required 2C
$
0
0
0
< Required 2A
Required 3
THE GRAM COMPANY
Balance Sheet
May 31
Total liabilities
Required 2C>
Liabilities
Equity
Total equity
0 Total liabilities and equity
$
0
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1fe61787-87ec-42ef-9b74-8862c323e0b5%2Fbae08d48-dbef-4800-9564-ffe5ab71db51%2Fwq6icfi_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Gabi Gram started The Gram Company, a new business that began operations on May 1. The Gram Company completed
the following transactions during its first month of operations.
May 1 G. Gram invested $40,000 cash in the company in exchange for its common stock.
May 1 The company rented a furnished office and paid $2,200 cash for May's rent.
May 3 The company purchased $1,890 of equipment on credit.
May 5 The company paid $750 cash for this month's cleaning services.
May 8 The company provided consulting services for a client and immediately collected $5,400 cash.
May 12 The company provided $2,500 of consulting services for a client on credit.
May 15 The company paid $750 cash for an assistant's salary for the first half of this month.
May 20 The company received $2,500 cash payment for the services provided on May 12.
May 22 The company provided $3,200 of consulting services on credit.
May 25 The company received $3,200 cash payment for the services provided on May 22.
May 26 The company paid $1,890 cash for the equipment purchased on May 3.
May 27 The company purchased $80 of equipment on credit.
May 28 The company paid $750 cash for an assistant's salary for the second half of this month.
May 30 The company paid $300 cash for this month's telephone bill.
May 30
The company paid $280 cash for this month's utilities.
May 31 The company paid $1,400 cash in dividends to the owner (sole shareholder).
2-a. Prepare the income statement for May.
2-b. Prepare the statement of retained earnings for May.
2-c. Prepare the balance sheet for May 31.
3. Prepare the statement cash flows for May.
Complete this question by entering your answers in the tabs below.
Required 2A Required 2B
Prepare the income statement for May.
Revenues:
Expenses
Required 2C
Total expenses
Required 3
THE GRAM COMPANY
Income Statement
For Month Ended May 31
Required 2A
Required 2B >
Complete this question by entering your answers in the tabs below.
Required 2A Required 2B
Retained earnings, May 1
Prepare the statement of retained earnings for May.
THE GRAM COMPANY
Statement of Retained Earnings
For Month Ended May 31
Retained earnings, May 31
Required 2A
Required 2C
Required 2B
Total assets
Prepare the balance sheet for May 31.
Assets
$
$
Required 3
Complete this question by entering your answers in the tabs below.
Required 2C
$
0
0
0
< Required 2A
Required 3
THE GRAM COMPANY
Balance Sheet
May 31
Total liabilities
Required 2C>
Liabilities
Equity
Total equity
0 Total liabilities and equity
$
0
0
0
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