Discover the answers you need at Westonci.ca, a dynamic Q&A platform where knowledge is shared freely by a community of experts. Connect with a community of experts ready to help you find accurate solutions to your questions quickly and efficiently. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.
Sagot :
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
Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.