Question

Holden Graham started The Graham Co., a new business that began operations on May 1. The Graham Co. completed the following transactions during its first month of operations. May 1 H. Graham invested $42,500 cash in the company. 1 The company rented a furnished office and paid $2,200 cash for May’s rent.. 3 The company purchased $1,900 of office equipment on credit. 5 The company paid $780 cash for this month’s cleaning services. 8 The company provided consulting services for a client and immediately collected $5,700 cash. 12 The company provided $2,600 of consulting services for a client on credit. 15 The company paid $780 cash for an assistant’s salary for the first half of this month. 20 The company received $2,600 cash payment for the services provided on May 12. 22 The company provided $3,100 of consulting services on credit. 25 The company received $3,100 cash payment for the services provided on May 22. 26 The company paid $1,900 cash for the office equipment purchased on May 3. 27 The company purchased $75 of advertising in this month’s (May) local paper on credit; cash payment is due June 1. 28 The company paid $780 cash for an assistant’s salary for the second half of this month. 30 The company paid $350 cash for this month’s telephone bill. 30 The company paid $290 cash for this month’s utilities. 31 H. Graham withdrew $1,800 cash from the company for personal use 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.) thank you :) what is their cash flows statement?

Answer 1

Ans			Holden Graham
			ACCOUNTING EQUATION
	DATE		ASSETS		LIABILITIES			EQUITY
								Retained Earnings
	Month	Cash	Accounts Receivable	Equipment	Accounts Payable+	Common Stock+	Revenue-	Expenes
	01-May	$                          42,500.00				$                        42,500.00
	01-May	$                          (2,200.00)						$                         2,200.00
	03-May			$     1,900.00	$                1,900.00
	05-May	$                             (780.00)						$                             780.00
	08-May	$                            5,700.00					$          5,700.00
	12-May		$                     2,600.00				$          2,600.00
	15-May	$                             (780.00)						$                             780.00
	20-May	$                            2,600.00	$                   (2,600.00)
	22-May		$                     3,100.00				$          3,100.00
	25-May	$                            3,100.00	$                   (3,100.00)
	26-May	$                          (1,900.00)			$              (1,900.00)
	27-May				$                      75.00			$                               75.00
	28-May	$                             (780.00)						$                             780.00
	30-May	$                             (350.00)						$                             350.00
	30-May	$                             (290.00)						$                             290.00
	31-May	$                          (1,800.00)				$                        (1,800.00)
	Total	$                          45,020.00	$                                  -	$     1,900.00	$                      75.00	$                        40,700.00	$        11,400.00	$                         5,255.00
	Summary
		ASSETS	$                   46,920.00
		Liabilities	$                           75.00
		Equity including Retained Earnings	$                   46,845.00
		Liablities +Equity	$                   46,920.00
		Statement of Cash Flow
		For the Month Ended May 31st
	Cash Flow from operating activities
	Cash received from customers	$                          11,400.00
	Cash paid for rent	$                          -2,200.00
	Cash paid for cleaning	$                              -780.00
	Cash paid for telephone	$                              -350.00
	Cash paid for utilities expenes	$                              -290.00
	Cash paid to employees	$                          -1,560.00
	Net Cash from Operating Activity=(A)		$                     6,220.00
	Cash Flow from Investing Activity
	Purchase of Equipment	$                          -1,900.00
	Net Cash from Investing Activity=(B)		$                   -1,900.00
	Cash Flow from financing Activity
	Amount invested in business net of drawings	$                          40,700.00
	Net Cash from Financing activity=(C )		$                   40,700.00
	Net Increase in cash=(A)+(B)+(C )		$                   45,020.00
	Beginning Cash on May 1st		$                                  -
	Ending Cash Balance on 31st May		$                   45,020.00