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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 $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, $5,200 for cash and $3,500 on account.
4.		June		11		Purchase cages and equipment necessary to maintain the animals, $8,400 cash.
5.		June		17		Pay employees’ salaries for the first half of the month, $6,500.
6.		June		22		Pay dividends to stockholders, $1,550.
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, $2,100.
8.		June		28		Pay utilities for the month, $3,300.
9.		June		30		Record salaries earned by employees for the second half of the month, $6,500. Payment will be made on July 2.

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 $14,700. (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.)

Answer 1