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Problem $7-2$

$10$ points

The following events apply to Cherry Co$.$ for fiscal $2023$ and $2024$

$1$ Borrowed $$54,000$ from the local bank on April $1,2023,$ when the company was started.

The note had an $8$ percent annual interest rate and a one$-$year term to maturity.

$2$ Recognized

$$141,000$ of revenue on account in $2023.$

$3$ Recognized $,$$$189,000$ of revenue on account in $2024.$

$4$ Collected $,$$$123,000$ cash from accounts receivable in $2023.$

$5$ Paid $.$ $$87,000$ of salaries expense in $2023.$

$6$ Collected $,$$$184,500$ cash from accounts receivable in $2024.$

$7$ Paid : $,$$$103,500$ of operating expenses in $2024.$

$8$ Accrue interest payable in $2023$

$9$ Accrue interest payable in $2024.$

$10$ Paid the loan and interest at the maturity date, $\frac{3}{31}\frac{?}{24}$

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 $2023$ cash flow statement?

c$.$ What amount of interest expense would be reported on the $2023$ income statement?

d$.$ What amount of total liabilities would be reported on the December $31,2023,$ balance sheet?

e$.$ What amount of retained earnings would be reported on the December $31,2023,$ balance sheet?

f$.$ What amount of cash flow from financing activities would be reported on the $2023$ statement of cash flows?

g$.$ What amount of interest expense would be reported on the $2024$ income statement?

h$.$ What amount of cash flows from operating activities would be reported on the $2024$ cash flow statement?

i$.$ What amount of assets would be reported on the December $31,2024,$ balance sheet?

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