1. Create a Direct Method Cash Flow Statement for June.

2. Create a Statement of Owners' Equity for June.

1. LivingLarge Trailer Home Refurbishing Person 1 started a Trailer Home Refurbishing business called LivingLarge in May. At the end of May, the firm's Balance Sheet was: Assets Current Assets 1 Cash AR Total Current Assets z Equity 3,000 NI 2,000 Dividend 5,000 PIC 5,000 1,000 1,000 5,000 Total z Equity PPE, net 3,000 Total Assets 8,000 Liabilities Current Liabilities 2,000 2,000 AP Total Current Liabilities Loan-LongTerm Total Liabilities 1,000 3,000 The following events occurred during June: a. Person 2 became an owner by investing $5,000 cash and $20,000 of equipment. (Note: Owners may put cash or other valuables into a firm to increase their Paid in Capital) b. LivingLarge paid S1,000 cash for electricity to be used in July. (Hint: use "Pre-paid Expense"). c. LivingLarge paid S1,500 cash for June rent. d. The company purchased $1,500 of equipment for its shop, and signed a zero interest note promising to pay for this amount within three years. e. Received a check for $500, for services previously provided and invoiced. (Note: in this text, receiving a check is the same as receiving cash) f. LivingLarge provided S4,000 of refurbishing services "on account" on account" in this case means "and invoiced its customers for this amount) g. A customer paid S1,000 of the amount due in f. above h. The company paid S500 cash to an employee for working during the month. i. The company paid down the above Note by $500. j. The company paid S500 cash dividends (total) to its owners. k. The company recognized S1,000 wear of all its net PPE during the month of June L. On the last day of the month, the company realized that $1,000 worth of its net PPE was left in the rain and damaged. The firm believes it can sell the damaged net PPE (as "Misc Asset, PPE) for $400