help with questions 1-7

Bob Corporation had the following financial position (balance sheet) as of December 31, 2020: Bob Corporation Balance Sheet As of December 31, 2021 and 2020 ($ in millions) ASSETS: 2021 2020 LIABILITIES: 2021 2020 Cash $10 Accounts $3 payable Accounts 7 Accrued 2 receivable liabilities Prepaid rent Total 2 current 5 liabilities Total Notes payable current assets 19 (5%, due 6 2025) Interest payable Office equipment 20 Total 11 liabilities Less: EQUITY: Accumulated (5) depreciation Total Common assets stock Retained 19 earnings Total 23 equity Total liabilities & $34 equity $34 4 During 2021, Bob had the following transactions and other activities (all amounts are in $millions): a. Sold consulting services on account worth $30. b. Collected $20 cash from clients on account. c. Paid $10 for rent on the office space for the months of March 2021 through December 2021. (Prepaid rent from last year's payment expired at the end of February 2021.) d. Recorded $1 of depreciation on office equipment. e. Paid vendors for previously unpaid balances (the balance of accounts payable). f. Paid the utilities bills and other accrued liabilities outstanding at December 31, 2020). g. Accrued interest on the note payable. Required: 1. Provide journal entries for items (a) - (g) above. 2. Update the balances of all accounts. (You may want to use T-accounts to make sure you don't make mistakes, but it's optional) 3. Prepare an income statement for Bob Corporation in good form. 4. Upon completing bookkeeping for all of these transactions and activities, close all temporary accounts (revenues and expenses) to retained earnings. 5. Prepare a cash flow statement for 2021 using the direct method for operating activities. 6. Prepare a cash flow statement for 2021 using the indirect method for operating activities. (While not required, you may want to create the 2021 balance sheet to readily see the changes in balance sheet accounts from 2020). 7. Briefly comment on the differences between Bob Corporation's 2021 performance as reported in their income statement vs. the operating cash flow