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.
May 1 The company rented a furnished office and paid $2,300 cash for May's rent..
May 3 The company purchased $1,860 of office equipment on credit.
May 5 The company paid $740 cash for this month's cleaning services.
May 8 The company provided consulting services for a client and immediately collected $5,300 cash.
May 12 The company provided $2,400 of consulting services for a client on credit.
May 15 The company paid $720 cash for an assistant's salary for the first half of this month.
May 20 The company received $2,400 cash payment for the services provided on May 12.
May 22 The company provided $3,100 of consulting services on credit.
May 25 The company received $3,100 cash payment for the services provided on May 22.
May 26 The company paid $1,860 cash for the office equipment purchased on May 3.
May 27 The company purchased $80 of advertising in this month's (May) local paper on credit; cash payment is due June 1.
May 28 The company paid $720 cash for an assistant's salary for the second half of this month.
May 30 The company paid $350 cash for this month's telephone bill.
May 30 The company paid $300 cash for this month's utilities.
May 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.)
Problem 1-7A Part 3
3-a. Prepare income statement for May.
3-b. Prepare statement of retained earnings for May.
3-c. Prepare Balance Sheet for May 31.
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.
May 1 The company rented a furnished office and paid $2,300 cash for May's rent..
May 3 The company purchased $1,860 of office equipment on credit.
May 5 The company paid $740 cash for this month's cleaning services.
May 8 The company provided consulting services for a client and immediately collected $5,300 cash.
May 12 The company provided $2,400 of consulting services for a client on credit.
May 15 The company paid $720 cash for an assistant's salary for the first half of this month.
May 20 The company received $2,400 cash payment for the services provided on May 12.
May 22 The company provided $3,100 of consulting services on credit.
May 25 The company received $3,100 cash payment for the services provided on May 22.
May 26 The company paid $1,860 cash for the office equipment purchased on May 3.
May 27 The company purchased $80 of advertising in this month's (May) local paper on credit; cash payment is due June 1.
May 28 The company paid $720 cash for an assistant's salary for the second half of this month.
May 30 The company paid $350 cash for this month's telephone bill.
May 30 The company paid $300 cash for this month's utilities.
May 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.)
Problem 1-7A Part 3
3-a. Prepare income statement for May.
3-b. Prepare statement of retained earnings for May.
3-c. Prepare Balance Sheet for May 31.
Related questions
[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 $40,000 cash in the company in exchange for its common stock. |
| 1 | The company rented a furnished office and paid $2,200 cash for Mayâs rent. |
| 3 | The company purchased $1,890 of office equipment on credit. |
| 5 | The company paid $750 cash for this monthâs cleaning services. |
| 8 | The company provided consulting services for a client and immediately collected $5,400 cash. |
| 12 | The company provided $2,500 of consulting services for a client on credit. |
| 15 | The company paid $750 cash for an assistantâs salary for the first half of this month. |
| 20 | The company received $2,500 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 $1,890 cash for the office equipment purchased on May 3. |
| 27 | The company purchased $80 of advertising in this monthâs (May) local paper on credit; cash payment is due June 1. |
| 28 | The company paid $750 cash for an assistantâs salary for the second half of this month. |
| 30 | The company paid $300 cash for this monthâs telephone bill. |
| 30 | The company paid $280 cash for this monthâs utilities. |
| 31 | The company paid $1,400 cash in dividends to the owner (sole shareholder). |
8.
value:
0.36 points
Required information
| 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.) |
Problem 2-2A (Part Level Submission)
Julia Dumars is a licensed CPA. During the first month of operations of her business, Julia Dumars, Inc., the following events and transactions occurred.
| May 1 | Stockholders invested $20,700 cash in exchange for common stock. | |
| 2 | Hired a secretary-receptionist at a salary of $2,700 per month. | |
| 3 | Purchased $2,400 of supplies on account from Vincent Supply Company. | |
| 7 | Paid office rent of $830 cash for the month. | |
| 11 | Completed a tax assignment and billed client $3,800 for services performed. | |
| 12 | Received $2,500 advance on a management consulting engagement. | |
| 17 | Received cash of $1,800 for services performed for Orville Co. | |
| 31 | Paid secretary-receptionist $2,700 salary for the month. | |
| 31 | Paid 40% of balance due Vincent Supply Company. |
Julia uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 201 Accounts Payable, No. 209 Unearned Service Revenue, No. 311 Common Stock, No. 400 Service Revenue, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense.
A.Journalize the transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
B.
Post to the ledger accounts. (Post entries in the order of journal entries presented in the previous part.)
C.
Prepare a trial balance on May 31, 2017.
