Cherokee Company began operations when it issued common stock for $96,500 cash. It paid contract to lease delivery equipment for the business. It signed the lease agreement on March 1, Year 1, which was effective immediately. Cherokee received $110,975 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 ne flow from operating activities for Year 1? Determine the amount of prepaid rent Cherokee Company would report on the Dece
Cherokee Company began operations when it issued common stock for $96,500 cash. It paid contract to lease delivery equipment for the business. It signed the lease agreement on March 1, Year 1, which was effective immediately. Cherokee received $110,975 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 ne flow from operating activities for Year 1? Determine the amount of prepaid rent Cherokee Company would report on the Dece
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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nomework, part 2 i
Cherokee Company began operations when it issued common stock for $96,500 cash. It paid $86,850 cash in advance for a one-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 $110,975 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.
nces
Req A and B
Reg C
Req D and E
Record the March 1 cash payment and adjustment required as of December 31, Year 1 in general journal format. (If no entry is required
for a transaction/event, select "No journal entry required" in the first account field Do not round intermediate calculations.)
View transaction list
View journal entry worksheet
期
Date
NO.
General Journal
Debit
Credit
March 01
Prepaid rent (Lease)
1.
86.850
Req C >
Mc
Graw
ype here to search
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1 of 4
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Transcribed Image Text:*******
Student Registration for D2L Brig X
Question 1- Chapter 13 homew X
B McGraw-Hill Connect Deep Integ X
Sllege X
neducation.com/ext/map/index.html?_con3con&external_browser%3D0&launchUrl=https%253A%252F%252Flms.mheducation.com%252Fmghmiddleware%252Fmhe
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nomework, part 2 i
Cherokee Company began operations when it issued common stock for $96,500 cash. It paid $86,850 cash in advance for a one-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 $110,975 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.
nces
Req A and B
Reg C
Req D and E
Record the March 1 cash payment and adjustment required as of December 31, Year 1 in general journal format. (If no entry is required
for a transaction/event, select "No journal entry required" in the first account field Do not round intermediate calculations.)
View transaction list
View journal entry worksheet
期
Date
NO.
General Journal
Debit
Credit
March 01
Prepaid rent (Lease)
1.
86.850
Req C >
Mc
Graw
ype here to search
Prev
1 of 4
Next >
ViewSonic
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Ca
omework, part 2 i
Cherokee Company began operations when it issued common stock for $96,500 cash. It paid $86,850 cash in advance for a one-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 $110,975 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 D and E
Show all events in a horizontal statements model. (Record the events as they occurred in question data. Enter any decreases to account balances and ca
the Statement of Cash Flows column, use OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in c
not round intermediate calculations.)
CHEROKEE COMPANY
Horizontal Statements Model for Year 1
Balance Sheet
Income Statement
Event
Assets
Liabilities +
Stockholders' Equity
Statement of Cash Flows
Prepaid
Rent
Common
Stock
Retained
Earnings
Cash
Revenue
Expenses
Net Income
1.
2.
3.
adj
+.
+1
Bal.
0.
< Req A and B
Req D and E >
Prev
of 4
Next
re to search
ViewSonic
F4
144
#3
114
Tab
F10
5."
Transcribed Image Text:灣
Ca
omework, part 2 i
Cherokee Company began operations when it issued common stock for $96,500 cash. It paid $86,850 cash in advance for a one-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 $110,975 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 D and E
Show all events in a horizontal statements model. (Record the events as they occurred in question data. Enter any decreases to account balances and ca
the Statement of Cash Flows column, use OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in c
not round intermediate calculations.)
CHEROKEE COMPANY
Horizontal Statements Model for Year 1
Balance Sheet
Income Statement
Event
Assets
Liabilities +
Stockholders' Equity
Statement of Cash Flows
Prepaid
Rent
Common
Stock
Retained
Earnings
Cash
Revenue
Expenses
Net Income
1.
2.
3.
adj
+.
+1
Bal.
0.
< Req A and B
Req D and E >
Prev
of 4
Next
re to search
ViewSonic
F4
144
#3
114
Tab
F10
5.
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