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5 Cowboy Ice Cream (CIC) had the following events in the Yeart scal year 1. The company started when it acquired $16.000 cash by issuing

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5 Cowboy Ice Cream (CIC) had the following events in the Yeart scal year 1. The company started when it acquired $16.000 cash by issuing common stock 2. Purchased a new cooktop that cost $14,500 cash 3. Earned $22.500 in cash revenue 4. Paid $12,200 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 use of four years and an estimated salvage value of $2.900. Use straight-line 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 CIC report on the Year 1 income statement? c. What amount of accumulated depreciation would CIC report on the December 31. Year 2. balance sheet? d. Would the cash flow from operating activities be affected by depreciation in Year 12 Record the above transactions in a horizontal statements model in the Cash Flow column, indicate whether the item is an operating activity (OA), (IA), a financing activity (FA), or net change in cosh (NC). If the element is not affected by the event, leave the coll bank. Enter any decreases to accou cash outflows with a minus sign. Not all cells will require entry) COWBOY ICE CREAM COMPANY Horizontal Statements Model Income Statement Balance Sheet Event Statement of Cash Flows Assets BV Equipment Revenue Expense Not Income Cash Equity Common Retained Stock Earnings + 1 2 + 3. + 4. ++ 5. Bal. Req B to D > med depreciation would CIC report on the December 31 Year 2, balance sheet? d. Would the cash flow from operating activities be affected by depreciation in Year 1? 25 points Complete this question by entering your answers in the tabs below. 00:50 Reg A Reg B to D Book b. What amount of depreciation expense would CIC report on the Year 1 income statement? c. What amount of accumulated depreciation would CIC report on the December 31, Year 2, balance sheet? d. Would the cash flow from operating activities be affected by depreciation in Year 1? b. Depreciation expense on Year 1 income statement c. Accumulated depreciation on 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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