Cherokee Company began operations when it issued common stock for $106,500 cash. It paid $95,850 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 $122,475 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 Reg C Reg 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.) View transaction list Journal entry worksheet Record rent paid in advance. Note: Enter debits before credits. Date General Journal Debit Credit March 01 Cherokee Company began operations when it issued common stock for $106,500 cash. It paid $95,850 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 $122,475 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 Reg D and E Show all events in a horizontal statements model. (Record the events as they occurred in question data. Enter any decreases to account balances and cash outflows with a minus sign. In the Statement of Cash Flows column, use OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. Not all cells require input. Do not round intermediate calculations.) Show less CHEROKEE COMPANY Horizontal Statements Model for Year 1 Balance Sheet Income Statement Event Assets = Liabilities Stockholders' Equity Statement of Cash Flows Cash Prepaid Rent Common Stock Retained Earnings Revenue Expenses Net Income 1. 2 = + + 3 adj + + Bal. Cherokee Company began operations when it issued common stock for $106,500 cash. It paid $95,850 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 $122,475 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. Reg A and B Reg C Reg D and 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 ould report on the December 31, Year 1, balance sheet. (Do not round intermediate calculations.) d. Net income Net cash flow from operating activities e. Prepaid rent
