year contract to lease delivery equipment for the business. It signed the lease agreement on March 1, Year 1, which was effective immediately. Cherokee received $135,700 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. Req A and B Req C Req D and E Check my work 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 Cash Flows column, u designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. Not all cells require input. Do not round intermediate calculations. CHEROKEE COMPANY Horizontal Statements Model for Year 1 Balance Sheet Income Statement Assets Event Stockholders' Equity Statement of Cash Flows Liabilities Prepaid Cash + Rent Common Retained Earnings Stock Revenue Expenses Net Income 1. + + 2. 3. adjustment + + Balance 0+ 0 = 0+ 0+ 0 0 = 0 > Show
year contract to lease delivery equipment for the business. It signed the lease agreement on March 1, Year 1, which was effective immediately. Cherokee received $135,700 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. Req A and B Req C Req D and E Check my work 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 Cash Flows column, u designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. Not all cells require input. Do not round intermediate calculations. CHEROKEE COMPANY Horizontal Statements Model for Year 1 Balance Sheet Income Statement Assets Event Stockholders' Equity Statement of Cash Flows Liabilities Prepaid Cash + Rent Common Retained Earnings Stock Revenue Expenses Net Income 1. + + 2. 3. adjustment + + Balance 0+ 0 = 0+ 0+ 0 0 = 0 > Show
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter8: Current And Contingent Liabilities
Section: Chapter Questions
Problem 69E: Unearned Revenue Jennifers Landscaping Services signed a $400-per-month contract on November 1,...
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Transcribed Image Text:year contract to lease delivery equipment for the business. It signed the lease agreement on March 1, Year 1, which was effective
immediately. Cherokee received $135,700 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.
Req A and B
Req C
Req D and E
Check my work
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 Cash Flows column, u
designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. Not all cells require input. Do not round intermediate calculations.
CHEROKEE COMPANY
Horizontal Statements Model for Year 1
Balance Sheet
Income Statement
Assets
Event
Stockholders' Equity
Statement of Cash Flows
Liabilities
Prepaid
Cash +
Rent
Common Retained
Earnings
Stock
Revenue
Expenses Net Income
1.
+
+
2.
3.
adjustment
+
+
Balance
0+
0 =
0+
0+
0
0 =
0
<Req A and B
Req D and E >>
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