Cherokee Company began operations when it issued common stock for $$92,000$ cash. It paid $$82,800$ cash in advance for a one$-$year contract to lease delivery equipment for the business. It signed the lease agreement on March $1,$ Year $1,$ which was effective immediately. Cherokee received $$105,800$ of cash revenue in Year $1.$

Required

a$.$ & b$.$ Record the March $1$ cash payment and adjustment required as of December $31,$ Year $1$ in general journal format.

c$.$ Show all events in a horizontal statements model.

d$.$ & e$.$ What amount of net income will Cherokee Company report on the Year $1$ income statement? What is the amount of net cash flow from operating activities for Year $1?$ Determine the amount of prepaid rent Cherokee Company would report on the December $31,$ Year $1,$ balance sheet.

Complete this question by entering your answers in the tabs below.

Req A and $B$

Req $D$ and $E$

Record the March $1$ cash payment and adjustment required as of December $31,$ Year $1$ in general journal format. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round intermediate calculations.$)$

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Journal entry worksheet

$1$

$2$

Record rent paid in advance.

Note: Enter debits before credits.

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