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:

1.		June		2		Obtain cash by borrowing $21,000 from the bank by signing a note.
2.		June		3		Pay rent for the current month, $1,500.
3.		June		7		Provide services to customers, $4,100 for cash and $2,400 on account.
4.		June		11		Purchase cages and equipment necessary to maintain the animals, $7,300 cash.
5.		June		17		Pay employees salaries for the first half of the month, $5,400.
6.		June		22		Pay dividends to stockholders, $1,275.
7.		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, $1,550.
8.		June		28		Pay utilities for the month, $2,200.
9.		June		30		Record salaries earned by employees for the second half of the month, $5,400. Payment will be made on July 2.

Cash
June 1	13,600
End. bal.	13,600