.iclased Supplles Tor S330 cash. Exercise 3-15A Recording prepaid items and identifying their effect on financial statements Cherokee Company began operations when it issued common stock for $80,000 cash S60,000 cash in advance for a one-year contract to lease deliver . It paid y equipment for the business. It signed the lease agreement on March 1, 2016, which was effective immediately. Cherokee rece $98,000 of cash revenue in 2016