A+ Work

Holden Graham 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 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 $1,870 of office equipment on credit.
5       The company paid $740 cash for this month’s cleaning services.
8

The company provided consulting services for a client and immediately collected $5,500 cash.
12

The company provided $2,500 of consulting services for a client on credit.
15       The company paid $800 cash for an assistant’s 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 $3,400 of consulting services on credit.
25       The company received $3,400 cash payment for the services provided on May 22.
26       The company paid $1,870 cash for the office equipment purchased on May 3.
27

The company purchased $85 of advertising in this month’s (May) local paper on credit; cash payment is due June 1.
28       The company paid $800 cash for an assistant’s salary for the second half of this month.
30       The company paid $400 cash for this month’s telephone bill.
30       The company paid $250 cash for this month’s utilities.
31       The company paid $1,900 cash in dividends to the owner (sole shareholder).

Required:

2.Enter the amount of each transaction on individual items of the accounting equation. Do not determine new account balances after each transaction.

3-c.     Prepare Balance Sheet for May 31.

Prepare statement of retained earnings for May.

3-a.     Prepare income statement for May.