Bob Corporation had the following financial position (balance sheet) as of December 31, 2020:

Bob Corporation Balance Sheet As of December 31, 2021 and 2020 ($ in millions)
ASSETS:	2021	2020		LIABILITIES:	2021	2020
Cash		$10		Accounts payable		$3
Accounts receivable		7		Accrued liabilities		2
Prepaid rent		2		Total current liabilities		5
Total current assets		19		Notes payable (5%, due 2025)		6
				Interest payable
Office equipment		20		Total liabilities		11
Less: Accumulated depreciation		(5)		EQUITY:
Total assets		$34		Common stock		4
				Retained earnings		19
				Total equity		23
				Total liabilities & equity		$34

During 2021, Bob had the following transactions and other activities (all amounts are in $millions):

1. Sold consulting services on account worth $30.
2. Collected $20 cash from clients on account.
3. Paid $10 for rent on the office space for the months of March 2021 through December 2021. (Prepaid rent from last years payment expired at the end of February 2021.)
4. Recorded $1 of depreciation on office equipment.
5. Paid vendors for previously unpaid balances (the balance of accounts payable).
6. Paid the utilities bills and other accrued liabilities outstanding at December 31, 2020).
7. Accrued interest on the note payable.

Required:

1. Provide journal entries for items (a) (g) above.
2. Update the balances of all accounts. (You may want to use T-accounts to make sure you dont make mistakes, but its optional.)
3. Prepare an income statement for Bob Corporation in good form.
4. Upon completing bookkeeping for all of these transactions and activities, close all temporary accounts (revenues and expenses) to retained earnings.
5. Prepare a cash flow statement for 2021 using the direct method for operating activities.
6. Prepare a cash flow statement for 2021 using the indirect method for operating activities. (While not required, you may want to create the 2021 balance sheet to readily see the changes in balance sheet accounts from 2020).
7. Briefly comment on the differences between Bob Corporations 2021 performance as reported in their income statement vs. the operating cash flow.