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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 May’s rent.
		3		The company purchased $1,890 of office equipment on credit.
		5		The company paid $750 cash for this month’s 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 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 $3,200 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 month’s (May) local paper on credit; cash payment is due June 1.
		28		The company paid $750 cash for an assistant’s salary for the second half of this month.
		30		The company paid $300 cash for this month’s telephone bill.
		30		The company paid $280 cash for this month’s utilities.
		31		The company paid $1,400 cash in dividends to the owner (sole shareholder) Required: 1. 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.)

Assets = Liabilities + Equity Date Cash + Accounts Receivable + Office Equipment = Accounts Payable + Common Stock – Dividends + Revenues – Expenses May 1 + + = + – + – 1 + + = + – + – 3 + + = + – + – 5 + + = + – + – 8 + + = + – + – 12 + + = + – + – 15 + + = + – + – 20 + + = + – + – 22 + + = + – + – 25 + + = + – + – 26 + + = + – + – 27 + + = + – + – 28 + + = + – + – 30 + + = + – + – 30 + + = + – + – 31 + + = + – + – $0 + $0 + $0 = $0 + $0 – $0 + $0 – $0

Answer 1

		Assets					=	Liabilities	+	Equity
Date		Cash	+	Accounts Receivable	+	Office Equipment	=	Accounts Payable	+	Common Stock	-	Dividends	+	Revenues	-	Expenses
May	1	40,000	+		+		=		+	40,000	-		+		-
May	1	(2,200)	+		+		=		+		-		+		-	2,200
May	3		+		+	1,890	=	1,890	+		-		+		-
May	5	(750)	+		+		=		+		-		+		-	750
May	8	5,400	+		+		=		+		-		+	5,400	-
May	12		+	2,500	+		=		+		-		+	2,500	-
May	15	(750)	+		+		=		+		-		+		-	750
May	20	2,500	+	(2,500)	+		=		+		-		+		-
May	22		+	3,200	+		=		+		-		+	3,200	-
May	25	3,200	+	(3,200)	+		=		+		-		+		-
May	26	(1,890)	+		+		=	(1,890)	+		-		+		-
May	27		+		+		=	80	+		-		+		-	80
May	28	(750)	+		+		=		+		-		+		-	750
May	30	(300)	+		+		=		+		-		+		-	300
May	30	(280)	+		+		=		+		-		+		-	280
May	31	(1,400)	+		+		=		+		-	1,400	+		-
		$        42,780	+	$              -	+	$       1,890	=	$           80	+	$        40,000	-	$         1,400	+	$        11,100	-	$        5,110