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workSavedHelpSave & ExitSubmitCheck my work1 G. Gram invested $44,500 cash in the company.May1 The company rented a furnished office and paid $2,200 cash for May'srent.3 The company purchased $5,110 of office equipment on credit.5 The company paid $760 cash for this month's cleaning services.8 The company provided consulting services for a client andimmediately collected $6,000 cash.12 The company provided $2,900 of consulting services for a client oncredit.15 The company paid $730 cash for an assistant's salary for the firsthalf of this month.20 The company received $2,900 cash payment for the services providedon May 12.22 The company provided $3,200 of consulting services on credit.25 The company received $3,200 cash payment for the services providedon May 22.26 The company paid $5,1110 cash for the office equipment purchased onMay 3.27 The company purchased $80 of advertising in this month's (May) localpaper on credit; cash payment is due June 1.28 The company paid $730 cash for an assistant's salary for the secondhalf ofthis month.30 The company paid $40e cash for this month's telephone bill.30 The company paid $270 cash for this month's utilities.31 GncesGram withdrew $1,900 cash from the company for personal use.SNextPrev2of 210:22 AMeType here to search94/2019

Question

Here's the chart for statement of owners equity. For monthEnded may 31st

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1 G. Gram invested $44,500 cash in the company.
May
1 The company rented a furnished office and paid $2,200 cash for May's
rent.
3 The company purchased $5,110 of office equipment on credit.
5 The company paid $760 cash for this month's cleaning services.
8 The company provided consulting services for a client and
immediately collected $6,000 cash.
12 The company provided $2,900 of consulting services for a client on
credit.
15 The company paid $730 cash for an assistant's salary for the first
half of this month.
20 The company received $2,900 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 $5,1110 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 $730 cash for an assistant's salary for the second
half ofthis month.
30 The company paid $40e cash for this month's telephone bill.
30 The company paid $270 cash for this month's utilities.
31 G
nces
Gram withdrew $1,900 cash from the company for personal use.
S
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work Saved Help Save & Exit Submit Check my work 1 G. Gram invested $44,500 cash in the company. May 1 The company rented a furnished office and paid $2,200 cash for May's rent. 3 The company purchased $5,110 of office equipment on credit. 5 The company paid $760 cash for this month's cleaning services. 8 The company provided consulting services for a client and immediately collected $6,000 cash. 12 The company provided $2,900 of consulting services for a client on credit. 15 The company paid $730 cash for an assistant's salary for the first half of this month. 20 The company received $2,900 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 $5,1110 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 $730 cash for an assistant's salary for the second half ofthis month. 30 The company paid $40e cash for this month's telephone bill. 30 The company paid $270 cash for this month's utilities. 31 G nces Gram withdrew $1,900 cash from the company for personal use. S Next Prev 2 of 2 10:22 AM e Type here to search 94/2019

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check_circleAnswer
Step 1

The statement of owner's equity shows the amount contributed by the owners in the business and consists of

a) capital directly contributed

b) profits and reserves  net of distributions

c) less all the drawings or withdrawal of capital.

 

Step 2

The accounting effect of the given transaction has been shown in the given table

1-May Cash is debited and Gram's Capital is credited, so owner's equity is credited
1 Rent expenses is debited and Cash is credited, so rent expenses will be debited in Income statement
3 Office Equipment is debited and Accounts Payable is credited, hence no transaction in income statement
5 Cleaning Expenses is debited and Cash is credited, so cleaning expenses debited in Income statement
8 Cash is debited and Revenue from consulting is credited, so consulting revenue is credited in Income statement
|Accounts Receivable is debited and Revenue from consulting is credited, so consulting revenue is credited in Income
12 statement
15 Salary expenses is debited and cash is credited, so salary expenses is debited in income statement
20 Cash is debited and accounts receivable is credited, no transaction in income statement
|Accounts Receivable is debited and Revenue from consulting is credited, so consulting revenue is credited in Income
22 statement
25 Cash is debited and accounts receivable is credited, no transaction in income statement
26 Accounts Payable is debited, Cash is credited, so no transaction in Income statement
27 Advertising expenses is debited, accounts payable is credited, so advertising expenses is debited in income statement
28 Salary expenses is debited and cash is credited, so salary expenses is debited in income statement
30 Telephone expenses is debited and cash is credited, so telephone expenses is debited in income statement
30 Utilities expenses is debited and cash is credited, so utilities expenses is debited in income statement
31 Grams's Drawings is debited and cash is credited, so owner's equity is reduced
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1-May Cash is debited and Gram's Capital is credited, so owner's equity is credited 1 Rent expenses is debited and Cash is credited, so rent expenses will be debited in Income statement 3 Office Equipment is debited and Accounts Payable is credited, hence no transaction in income statement 5 Cleaning Expenses is debited and Cash is credited, so cleaning expenses debited in Income statement 8 Cash is debited and Revenue from consulting is credited, so consulting revenue is credited in Income statement |Accounts Receivable is debited and Revenue from consulting is credited, so consulting revenue is credited in Income 12 statement 15 Salary expenses is debited and cash is credited, so salary expenses is debited in income statement 20 Cash is debited and accounts receivable is credited, no transaction in income statement |Accounts Receivable is debited and Revenue from consulting is credited, so consulting revenue is credited in Income 22 statement 25 Cash is debited and accounts receivable is credited, no transaction in income statement 26 Accounts Payable is debited, Cash is credited, so no transaction in Income statement 27 Advertising expenses is debited, accounts payable is credited, so advertising expenses is debited in income statement 28 Salary expenses is debited and cash is credited, so salary expenses is debited in income statement 30 Telephone expenses is debited and cash is credited, so telephone expenses is debited in income statement 30 Utilities expenses is debited and cash is credited, so utilities expenses is debited in income statement 31 Grams's Drawings is debited and cash is credited, so owner's equity is reduced

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Step 3

The income statement is show...

Income statement
for the month of May
Revenues
Revenue from consulting
(6000+2900+3200)
$
$
12100
Expenses
Rent expenses
2200
Cleaning expenses
Salary expenses(730*2)
Advertising expenses
Telephone expenses
Utilities expenses
Total expenses
760
1460
80
400
270
5170
Net Profit
6930
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Income statement for the month of May Revenues Revenue from consulting (6000+2900+3200) $ $ 12100 Expenses Rent expenses 2200 Cleaning expenses Salary expenses(730*2) Advertising expenses Telephone expenses Utilities expenses Total expenses 760 1460 80 400 270 5170 Net Profit 6930

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