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Problem 7 - 2 1 0 points The following events apply to Cherry Co . for fiscal 2 0 2 3 and 2 0 2
Problem
points
The following events apply to Cherry Co for fiscal and
Borrowed $ from the local bank on April when the company was started.
The note had an percent annual interest rate and a oneyear term to maturity.
Recognized
$ of revenue on account in
Recognized $ of revenue on account in
Collected $ cash from accounts receivable in
Paid $ of salaries expense in
Collected $ cash from accounts receivable in
Paid : $ of operating expenses in
Accrue interest payable in
Accrue interest payable in
Paid the loan and interest at the maturity date,
REQUIRED
a Record the above transactions in a horizontal statements model. Organize into two separate years and separate events accordingly.
b What amount of net cash flow from operating activities would be reported on the cash flow statement?
c What amount of interest expense would be reported on the income statement?
d What amount of total liabilities would be reported on the December balance sheet?
e What amount of retained earnings would be reported on the December balance sheet?
f What amount of cash flow from financing activities would be reported on the statement of cash flows?
g What amount of interest expense would be reported on the income statement?
h What amount of cash flows from operating activities would be reported on the cash flow statement?
i What amount of assets would be reported on the December balance sheet?
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