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.

$1$ - 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.

$31$ - G. Gram withdrew $\$1,400$ cash from the company for personal use.

Required

1. Create the following table similar to the one in the previous Exhibit, that is, "Summary of Transactions Using the Accounting Equation".

Date	Assets					=	Liabilities	+	Equity
	Cash	+	Accounts Receivable	+	Office Equipment	=	Accounts Payable	+	G. Gram, Capital	-	G. Gram, Withdrawals	+	Revenues	-	Expenses

Enter the effects of each transaction on the accounts of the accounting equation by recording dollar increases and decreases in the appropriate columns. Do not determine new account balances after each transaction. Determine the final total for each account and verify that the equation is in balance.

2. Prepare the income statement and the statement of owner’s equity for the month of May, and the balance sheet as of May $31$.

3. Prepare the statement of cash flows for the month of May.

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.

4. Prepare a Statement of Cash flows for May.

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.

2. Prepare an Income Statement for May.

Gabi Gram started The Grain 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. 
    2   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 consulling 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 580 of office equipment on credit. 
   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. Create the following table.

Enter the effects of each transaction on the accounts of the accounting equation by recording dollar increases and decreases in the appropriate columns. Do not determine new account balances after each transaction. Determine the final total for each account and verify that the equation is in balance.

2. Prepare the income statement and the statement of retained earnings for the month of May, and the balance sheet as of May 31.

3. Prepare the statement of cash flows for the month of May.

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.

5. Prepare a May 31 Balance Sheet.

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.

1. Arrange the following asset, liability, and equity titles in a table. Show effects of the transactions on the accounts of the accounting equation by recording increases and decreases in the appropriate columns. Do not determine new account balances after each transaction. Determine the final total for each account and verify that the equation is in balance.

Prepare general journal entries for the following transactions of Sustain Company.

June 1  T. James, owner, invested $11,000 cash in Sustain Company in exchange for common stock.
     2  The company purchased$4,000 of furniture made from reclaimed wood on credit.
     3  The company paid $600 cash for a 12-nionth prepaid insurance policy on the reclaimed furniture.
     4  The company billed a customer$3,000 for sustainability services provided.
    12  The company paid $4,000 cash toward the payable from the June 2 furniture purchase.
    20  The company collected$3,000 cash for services billed on June 4.
    21  T. James invested an additional $I 0,000 cash in Sustain Company in exchange for common stock.
    30  The company received$5,000 cash in advance of providing sustainability services to a customer,

Natsu Company's annual accounting period ends on October 31, 2017. The following information concerns the adjusting entries that need to be recorded as of that date. (Entries can draw from the following partial chart of accounts: Cash; Rent Receivable; Office Supplies; Prepaid Insurance; Building: Accumulated Depreciation Building; Salaries Payable; Unearned Rent; Rent Earned; Salaries Expense; Office Supplies Expense; Insurance Expense; Depreciation Expense-Building.)

Required
1. Use the information to prepare adjusting entries as of October 31, 2017.
2. Prepare journal entries to record the first subsequent transaction in November 2017 for parts c and e.

c. The company has four employees, who earn a total of $1,000 for each workday. They are paid each Monday for their work in the five-day workweek ending on the previous Friday. Assume that October 31, 2017, is a Monday, and all four employees worked the first day of that week. They will be paid salaries for five full days on Monday, November 7, 2017.

On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,000 in assets in exchange for its common stock to launch the business. On December 31, the company's records show the following items and amounts. Use this information to prepare a December income statement for the business.

Cash$ 11,360
Accounts receivable             14,000
Office supplies                  3,250
Office equipment                18,000
Land                            46,000
Accounts payable                 8,500
Common stock                    84,000
Cash dividends                   2,000
Consulting revenue              14,000
Rent expense                     3,550
Salaries expense                 7,000
Telephone expense                  760
Miscellaneous expenses             580

As of December 31 of the current year. Armani Company's records show the following.

Cash                                      $10,000              Retained earnings, Dec. 31, current year$5,000  
Accounts receivable                         9,000              Dividends                                     13,000 
Supplies                                    7,000              Consulting revenue                            33,000 
Equipment                                   4,000              Rental revenue                                22,000
Accounts payable                           11,000              Salaries expense                              20,000 
Common stock                               14,000              Rent expense                                  12,000 
Retained earnings, Dec. 31, prior year      3,000              Selling and administrative expenses            8,000 

Prepare the current year-end balance sheet for Armani Company.

Refer to the data for Office Plus Copy Center, Inc.

Requirement

Prepare the statement of cash flows of Office Plus Copy Center, Inc., for the month ended May 31, 2014. Show with arrows the relationships among the income statement, statement of retained earnings, balance sheet, and statement of cash flows.

Swiss Group reports net income of $40,000 for 2017. At the beginning of 2017, Swiss Group had$200,000 in assets. By the end of 2017, assets had grown to $300,000. What is Swiss Group’s 2017 return on assets? How would you assess its performance if competitors average an 11% return on assets?

As of December 31 of the current year. Armani Company's records show the following.

Cash                                      $10,000              Retained earnings, Dec. 31, current year$5,000  
Accounts receivable                         9,000              Dividends                                     13,000 
Supplies                                    7,000              Consulting revenue                            33,000 
Equipment                                   4,000              Rental revenue                                22,000
Accounts payable                           11,000              Salaries expense                              20,000 
Common stock                               14,000              Rent expense                                  12,000 
Retained earnings, Dec. 31, prior year      3,000              Selling and administrative expenses            8,000 

Required

Prepare the income statement for Armani Company for the current year ended December 31.

Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations.

a. Lita Lopez invests $70,000 cash and office equipment valued at$10,000 in the company.

b. The company purchased a $150,000 building to use as an office. Biz Consulting paid$20,000 in cash and signed a note payable promising to pay the $130,000 balance over the next 10 years.

c. The company purchased office equipment for$15,000 cash.

d. The company purchased $1,200 of office supplies and$1,700 of office equipment on credit.

e. The company paid a local newspaper $500 cash for printing an announcement of the office’s opening.

f. The company completed a financial plan for a client and billed that client$2,800 for the service.

g. The company designed a financial plan for another client and immediately collected a $4,000 cash fee.

h. Lita Lopez withdrew$3,275 cash from the company for personal use.

i. The company received $1,800 cash as partial payment from the client described in transaction f.

j. The company made a partial payment of$700 cash on the equipment purchased in transaction d.

k. The company paid $1,800 cash for the office secretary’s wages for this period.

Required

1. Create a table like the one in Exhibit 1.9, using the following headings for the columns: Cash; Accounts Receivable; Office Supplies; Office Equipment; Building; Accounts Payable; Notes Payable; L. Lopez, Capital; L. Lopez, Withdrawals; Revenues; and Expenses.

2. Use additions and subtractions within the table created in part 1 to show the dollar effects of each transaction on individual items of the accounting equation. Show new balances after each transaction.

3. Once you have completed the table, determine the company’s net income.