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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.

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1-a. Based on the information given the income statement for May is $5,750.

1-b. The statement of retained earnings for May is $4,350.

1-c. The balance sheet for May 31 is $45,430, $45,430.

2. The statement of cash flows for May is $43,410.

Income statement:

1-a) Gabi gram co.  Income Statement  For Month Ended May 31

Revenues:  

Consulting fees revenue $11,200

($5,200+$2,600+$3,400)  

Expenses:  

Salary expense $1,440

($720+720)

Cleaning expense $740  

Telephone expense $400  

Utilities expense $270  

Rent expense $2600  

Total expenses  $5,450

Net income  $5,750

($11,200-$5,450)

1-b) Statement of Retained Earnings

Gabi gram co.  Statement of Retained earnings  For Month Ended May 31

Retained earnings, May 1 $0

Add: Net income $5,750  

Less: Dividends ($1,400)

Retained earnings, May 31 $4,350

($5,750-$1,400)

1-c) Balance Sheet

Gabi gram co. Balance Sheet May 31

Assets

Cash $43,410

($41000-$2600-$740+$5200-$720+$2600+$3400-$1940-$720-$400-$270-$1400)

Accounts receivable $0  

($2600-$2600+$3400-$3400)

Office equipment $2,020

($1940+$80)

Total assets $45,430

Liabilities

Accounts payable $80

($1940-$1940+$80)

Equity

Common stock $41,000

Retained earnings $4,350

Total liabilities and equity $45,430

2- Cash Flow Statement

Gabi gram co.  Statement of Cash Flows  For Month Ended May 31

Cash flow from Operating activities:  

Cash received from customers $11,200

($5200+$2600+$3400)  

Cash paid for rent ($2,600)  

Cash paid for cleaning services ($740)  

Cash paid to employees ($1,440)

($720+$720)  

Cash paid for telephone ($400)  

Cash paid for utilities ($270)

Net cash provided by operating activities $5,750

Cash flow from Investing activities:  

Purchase of office equipment ($1,940)  

Net cash used in investing activities  ($1,940)

Cash flow from financing activities:

Investment by shareholder $41,000  

Dividend paid ($1,400)  

Net cash provided by financing activities  $39,600

Net increase (decrease) in cash $43,410

($5750-$1940+$39600)  

Add: Beginning cash balance  $0

Ending cash balance  $43,410

Inconclusion the income statement for May is $5,750, statement of retained earnings for May is $4,350, balance sheet for May 31 is $45,430, $45,430 and statement of cash flows for May is $43,410.

Learn more about income statement here:https://brainly.com/question/735261

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