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

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Required information Problem 4-5B Record transactions, post to the Cash T-account, and prepare the statement of cash flows (LO4-7) [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 borrowing $19,000 from the bank by signing a note. 2. June 3 Pay rent for the current month, $1,200. 3. June 7 Provide services to customers, $4,900 for cash and $3,200 on account. 4. June 11 Purchase cages and equipment necessary to maintain the animals, $8,100 cash. 5. June 17 Pay employees' salaries for the first half of the month, $6,200. 6. June 22 Pay dividends to stockholders, $1,475. 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, $1,950. 8. June 28 Pay utilities for the month, $3,000. 9. June 30 Record salaries earned by employees for the second half of the month, $6,200. Payment will be made on July 2. Journal entry worksheet Record receipt of cash by borrowing $19,000 from the bank by signing a note. Note: Enter debits before credits. General Journal Debit Credit O Date June 02 / / / Record entry Clear entry View general journal 3. Assuming the balance of cash at the beginning of June is $14,400, post each cash transaction to the Cash T-account. Cash 14,400 June 1 End, bal. 14.400 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 $14,400. (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.) HOMEWARD BOUND Statement of Cash Flows For the month ended June 30 Cash Flows from Operating Activities Cash inflows: Cash outflows Net cash flows from operating activities VOAST vows trom operating activities Cash Flows from Investing Activities 1 1 Net cash flows from investing activitie Cash Flows from Financing Activities Net cash flows from financing activities Cash at the beginning of the month Cash at the end of the month

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