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1. The company started when it acquired $17,000 cash by issuing common stock: 2. Purchased a new cooktop that cost $15,800 cash, 3. Eamed $20,600

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1. The company started when it acquired $17,000 cash by issuing common stock: 2. Purchased a new cooktop that cost $15,800 cash, 3. Eamed $20,600 in cash revenue. 4. Paid $10,700 cash for salaries expense. 5. Adjusted the records to reflect the use of the cooktop. Purchased on January 1, Year 1, the cooktop has an expected useful iffe of four years and an estimated salvage value of $2.300. Use straight-fine depreciation. The adjusting entry was made as of December 31 , Year 1 Required a. Record the above transactions in a horizontal statements model. b. What amount of depreciation expense would ClC report on the Year 1 income statement? c. What amount of accumulated depreciation would CIC repoit on the December 31 , Year 2. balance sheet? d. Would the cash flow from operating activities be affected by depreciation in Year 1 ? Complete this question by entering your answers in the tabs below. Record the above transactions in a horizontal statements migdel. (In the Cash flow column, indicate whether the item is an operating activity (OA), an investing (IA), a financing activity (IA), of net change in cash (NC). If the element is not affected by the event, teave the cell blank. Enter any decreases to account balane cash outhows with a minus sign. Not all cells will require entry.) Record the above transactions in a horizontal statements model. (In the Cash flow column, indicate whether the ifem is an operating octivity (OA), an investing activity) (IA), a financing activity (FA), of net change in cash (NC). If the element is not affected by the event, leave the cell blank: Enter any decreases to account balances and crish outflows with a minus sign. Not all cells will require entry.) b. What amount of depreciation expense would CIC report on the Year 1 income statement? c. What amount of accumulated depreciation would ClC report on the December 31, Year 2 , balance sheet? d. Would the cash flow from operating activities be affected by depreciation in Year 1

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