Problem 1-7A (Static) Part 2 and 3
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.
Required information
Problem 1-7A (Static) Analyzing transactions and preparing financial statements LO P1,P2
[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 The company rented a furnished office and paid $2,2o0 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 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 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.
Problem 1-7A (Static) Part 2 and 3
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
