Problem 4-5B Record transactions, post to the Cash T-account, and prepare the statement of cash flows (LO4-7)

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Peter loves dogs and cats. For the past several years, he has owned and operated Homeward Bound, which temporarily houses pets while their owners go on vacation. For the month of June, the company has the following transactions:

June 2 Obtain cash by borrowing $21,000 from the bank by signing a note. June 3 Pay rent for the current month, $1,500. June 7 Provide services to customers, $3,800 for cash and $2,100 on account. June 11 Purchase cages and equipment necessary to maintain the animals, $7,000 cash. June 17 Pay employees salaries for the first half of the month, $5,100. June 22 Pay dividends to stockholders, $1,200. June 25 Receive cash in advance from a customer who wants to house his two dogs (Chance and Shadow) and cat (Sassy) while he goes on vacation the month of July, $1,400. June 28 Pay utilities for the month, $1,900. June 30 Record salaries earned by employees for the second half of the month, $5,100. Payment will be made on July 2.

6.

value: 1.00 points

Required information

Problem 4-5B Part 1

Required:

1. Record each transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

7.

value: 1.00 points

Required information

Problem 4-5B Part 2

2. Identify the transactions involving cash. (Select all that apply.)

June 2

June 3

June 7

June 11

June 17

June 22

June 25

June 28

June 30

8.

value: 1.00 points

Required information

Problem 4-5B Part 3

3. Assuming the balance of cash at the beginning of June is $13,300, post each cash transaction to the Cash T-account.

9.

value: 1.00 points

Required information

Problem 4-5B Part 4

4. Prepare a statement of cash flows for the month of June, properly classifying each of the cash transactions into operating, investing, and financing activities. Assume that the balance of cash at the beginning of October is $13,300. (List cash outflows and decrease in cash as negative amounts. Total entries from the same source together when entering in the statement of cash flows.)