Cherokee Company began operations when it issued common stock for $$113,500$ cash. It paid $$102,150$ 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 $$130,525$ 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.