Required information Problem 4-58 Record transactions, post to the Cash T-account, and prepare the statement of cash flows (L04-7) [The following information applies to the questions displayed below) 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 borroving $21,000 from the bank by sa nane a note. 2. June 3 Pay rent for the current month $1,500. 3. Jime 7 Provide services to customers. $3,800 for cash and $2,100 on account. 4. June 11 Purchase cases and equaparent necessary to maintain the animals. $7,000 cash 5. Tune 17 Pay employees' salaries for the first half of the month. $6.100. 6. June 22 Pay dividends to stockholders. $1.200. 7. June 25 Receive cash in advance from a customer who wants to house has two dogs (Chance and Shadow) and cat (Sarsy) while he coes on vacation the month of July. 31. 400. 8. June 28 Pay utilities for the month. $1.000. 9. June 30 Record salaries earned by exployees tor the second half of the month. $5.100. Payment will be made on July 2. 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 June is $13,300. (List cosh outflows and decrease in cash as negative amounts. Total entries from the same source together when entering in the statement of cosh flow.) Check my work mode : This shows what is correct or incorrect for to 14 Required information & Answer is complete but not entirely correct. Part 4 of 4 0.72 points HOMEWARD BOUND Statement of Cash Flows For the month ended June 30 Cash Flows from Operating Activities Cash inflows From customers > 1,400 Cash outflows For rent For salaries For Utilities (1.500) (5,100) (1,900) Net cash flows from operating activities Cash Flows from Investing Activities Purchase equipment (7.100) > (7.000) (7.000) Net cash flows from investing activities Cash Flows from Financing Activities Pay dividends Borrow from bank (1.200) 21,000 Net cash flows from financing activities Net increase in cash Cash at the beginning of the month Cash at the end of the month 19,800 9,500 13.300 22.800 $ 1. Record each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Answer is complete but not entirely correct. No Date General Journal Credit 1 June 02 Cash Notes Payable Debit 21,000 21,000 2 June 03 Rent Expense Cash 1,500 03 > 1,500 3 June 07 Cash Accounts Receivable Service Revenue 3,800 2,100 5.900 > 4 June 11 Equipment Cash 7.000 7,000 5 June 17 O Salaries Expense Cash 5,100 > 5,100 5 June 22 Dividends Cash 1 200 > O 1,200 7 June 25 Cash Service Revenue 1.400 1.400 8 June 28 1,900 Utilities Expanse Cash 1.000
