tercise 13-15A (Algo) Recording prepaid items and identifying their effect on financial statements 132 erokee Company began operations when it issued common stock for $113,500 cash. It paid $102,150 cash in advance for a e-year contract to lease dellvery equipment for the business. It signed the lease agreement on March 1 , Year 1 , which was ective immediately. Cherokee recelved $130,525 of cash revenue in Year 1 . quired \& b. Record the March 1 cash payment and adjustment required as of December 31 , Year 1 in general journal format. Show all events in a horizontal statements model. & e. What amount of net income will Cherokee Company report on the Year 1 income statement? What is the amount of net sh flow from operating activities for Year 1? D'etermine the amount of prepaid rent Cherokee Company would report on the - cember 31, Year 1 , balance sheet. Record rent paid in advance. Note: Enter debits before credits: Record the adjusting entry for prepaid rent. Note: Enter debits before credits. CHEROKEE COMPANY Horizontal Statements Model for Year 1 What amount of net income will Cherokee Company report on the Year 1 income flow from operating activities for Year 1 ? Determine the amount of prepaid rent December 31, Year 1 , balance sheet. (Do not round intermediate calculations.)