Exercise 13-15A (Algo) Recording prepaid items and identifying their effect on financial statements LO 13-2 Cherokee Company began operations when it issued common stock for $100,500cash. It paid $90,450 cash in advance for a oneyear contract to lease delivery equipment for the business. It signed the lease agreement on March 1. Year 1, which was effective immediately. Cherokee recelved $115,575 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. Record the March 1 cash payment and adjustment required as of December 31 , Year 1 in general journal format. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Journal entry worksheet Record the March 1 cash payment and adjustment required as of December 31 , Note: If no entry is required for a transaction/event, select "No journal entry requ intermediate calculations. 1 Record rent paid in advance. 2 Record the adjusting entry for prepaid rent. Complete this question by entering your answers in the tabs below. Show all events in a horizontal statements model. Note: 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 Cas designate operating activity, IA for investing activity, FA for finaneing activity, and NC for net change in cash. Not all cells require input. Do not round intermediate a. \& b. Record the March 1 cash payment and adjustment required as of December 31 , Year 1 in 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 staten flow from operating activities for Year 1? Determine the amount of prepaid rent Cherokee Com Year 1, balance sheet. Complete this question by entering your answers in the tabs below. What amount of net income will Cherokee Company report on the Year 1 income statement? Wha flow from operating activities for Year 1 ? Determine the amount of prepaid rent Cherokee Compa December 31, Year 1, balance sheet. Note: Do not round intermediate calculations
