Share
Explore BrainMass

Transactions of Operations Graham Co

Holden Graham started the Graham Co a new buisness that began operations on may 1. The graham co completed the following transactions during its first month of operations.

May 1 H. Graham invested $43,000 cash in the business in exchange for common stock.
1 Rented a furnished office and paid $2,200 cash for May's rent.
3 Purchased $1,940 of office equipment on credit.
5 Paid $750 cash for this month's cleaning services.
8 Provided consulting services for a client and immediately collected $5,800 cash.
12 Provided $2,800 of consulting services for a client on credit.
15 Paid $850 cash for an assistant's salary for the first half of this month.
20 Received $2,800 cash payment for the services provided on May 12.
22 Provided $4,000 of consulting services on credit.
25 Received $4,000 cash payment for the services provided on May 22.
26 Paid $1,940 cash for the office equipment purchased on May 3.
27 Purchased $85 of advertising in this month's (May) local paper on credit; cash payment is due
June 1.
28 Paid $850 cash for an assistant's salary for the second half of this month.
30 Paid $400 cash for this month's telephone bill.
30 Paid $260 cash for this month's utilities.
31 H.Graham withdrew 2,000 cash from the company for personal use.

1. Arrange the following asset, liability, and equity titles in a table like Exhibit 1.9: Cash; Accounts Receivable; Office Equipment; Accounts Payable; H. Graham, Capital; H. graham, withdrawals; revenues; and expenses.

2. 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.

3.Prepare an income statement for may, a statement of owner's equity for may, a may 31 balance sheet, and a statement of cash flows for may.

Attachments

Solution Summary

Transactions of operations Graham Co is examined.

$2.19