To finance its expansion interstate, the board of directors at DreamPillow issued a prospectus on 1 May 2021 to offer 800,000 ordinary shares at an issue price of 92 cents each to existing shareholders. Half of the share value was payable on application and the remaining half was payable in one call.

On 31 July 2021, applications closed and DreamPillow received application forms for a total of 800,000 shares. The cost of drafting the prospectus comprised $7,700 (GST Inclusive) in legal fees which were paid on the day of application closure. Shares were allotted on 1 August 2021. On 30 November 2021, the final call on the shares was made, and all cash was received on the call by 15 December 2021.

Required: Record the above transactions in the General Journal below. Narrations are not required.

1. For the financial year ending 31 December 2021, DreamPillow reported the following information:

• total net sales were $350,000 and total expenses were $180,000
• opening retained earnings were $1,170,000; closing retained earnings were $1,320,000
• the balancing value in the Retained Earnings account is dividends declared and paid
• a $70,000 bank loan was fully repaid

Required: Using information from part (a) and part (b) of Question 5, fill in the table below.

Cash Flows from Financing Activities
Net cash flows used in financing activities