Cherokee Company began operations when it issued common stock for $80,000 cash. It paid $60,000 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 $98,000 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 Reqc Req Dand 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.) View transaction list View journal entry worksheet No Date General Journal Credit 1 March 01 Debit 80,000 Cash Common stock Prepaid rent (Lease) Cash 80,000 60,000 60,000 Reqc > Year 1, balance sheet. Complete this question by entering your answers in the tabs below. Reg A and B ReqC Reg D and E Show all events in a horizontal statements model. (Record the events as they occurred in question data. In the Statement of Cash Flows column, use DA to des activity, FA for financing activity, and NC for net change in cash. Not all cells in the Statement of Cash Flows" column may require an input - leave cells blank any decreases to account balances with a minus sign. Do not round intermediate calculations.) Assets Liabilities CHEROKEE COMPANY Horizontal Statements Model for Year 1 Stockholders' Equity Common Stock Retained Revenue Earnings ces Income Statement Event Statement of Cash Flows Cash Prepaid Rent - Expenses Net Income 1 2 3 ad) Bal 0 O. 01. 0 0 0 12 Cherokee Company began operations when it issued common stock for $80,000 cash. It paid $60,000 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 $98,000 of cash revenue in Year 1 10 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. eBook Complete this question by entering your answers in the tabs below. Print Reg A and B Rec Reg D and References 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 17 Determine the amount of prepaid rent Cherokee Company would report on the December 31, Year 1, balance sheet. (Do not round intermediate calculations.) d. Net income Net cash flow from operating activities . Prepaid rent & Rec
