EXERCISE ACCOUNTING EQUATION Holden Graham started The Graham Co.

, a new business that began operations on May 1. The Graham Co., completed the following transactions during its first month of operations. May 1 1 3 5 8 12 15 20 22 25 26 27 28 30 30 31 Required: 1. Arrange the following asset, liability and equity titles in a table: Cash; Account Receivable; Office Equipment; Account Payable; Graham Capital; Graham Withdrawals; Revenue and Expenses 2. Show effect of the transaction on the accounts of the accounting equation. 3. Prepare an Income Statement, a Statement of Owners Equity, Balance Sheet and Statement of Cash Flow for May6 Graham invested $43,000 cash in company The company rented a furnished office and paid $2,200 cash for Mays rent The company purchased $1,940 of office equipment on credit The company paid $750 cash for this months cleaning services The company provided consulting services for a client and immediately collected $5,800 cash The company provided $2,800 of consulting services for a client on credit The company paid $850 cash for an assistants salary for the first half of this month The company received $2,800 cash payment for the services provided on May 12 The company provided $4,000 of consulting services on credit The company received $4,000 cash payment for the services provided on May 22 The company paid $1,940 cash for the office equipment purchased on May 3 The company purchased $85 of advertising in this months (May) local paper on credit; cash payment is due June 1 The company paid $850 cash for an assistants salary for the second half of this month The company paid $400 cash for this months telephone bill The company paid $260 cash for this months utilities Graham withdrew $2,000 cash from the company for personal use