Requirement 1: Date October 2 Account Cash Service Revenue (Receive membership dues) October 5 Cash October 9 October 12 6 7 8 October 19 9 30 BALBOA'S GYM Transactions Debit Credit Common Stock (Issue common stock) Equipment Cash Accounts Payable (Purchase boxing equipment: one-half paid for with cash on this date and issue a note payable for one-half, due by the end of the year) Advertising Expense Cash (Pay for current month advertising) Dividends Cash (Pay dividends) October 12 October 19 Advertising Expense Cash (Pay for current month advertising) Dividends Cash (Pay dividends) October 22 Prepaid Insurance Cash (Pay prepaid insurance) October 25 Cash Deferred Revenue (Receive membership dues in advance) , October 30 Utilities Expense 1 2 3 October 31 5 -6 Utilities Payable (Receive current month utilities bill) Salaries Expense Cash (Pay current month salaries) Requirement 3: Cash Debits Credits October 1 October 9 October 2 October 12 October 5 October 25 October 19 October 22 October 31 Requirement 4: BALBOA'S GYM Statement of Cash Flows For the month ended October 31 Cash Flows from Operating Activities Cash inflows: From customers Cash Outflows: For advertising For insurance For salaries Net cash flows from operating activities Cash Flows from Investing Activities Purchase of boxing equipment Net cash flows from investing activities Cash Flows from Financing Activities Issuance of common stock Payment of dividends Net cash flows from financing activities Net increase in cash Cash at the beginning of the month Cash at the end of the month Requirement 5: Ending cash balance Beginning cash balance Change in cash balance for the month BALBOA'S GYM October Transactions October 259 Receive membership dues for October Issue common stock for cash Purchase boxing equipment: Price of equipment $ 59959 $ 8,500 12,000 Cash paid at time of purchase 202235 12 Pay for advertising 19 Pay dividends to stockholders Pay six months' liability insurance beginning Nov. 1 Receive cash in advance for November memberships 31 Receive but do not pay utility bill Pay employees' salaries for month Additional Information: $ SSSSSSSS $ 9,600 $ 4,800 $ 1,500 4,400 6,900 5,600 5,200 7,300 Beginning October cash balance $ 16,600