5 Part 1 of 6 Required information Exercise 8-7A Effect of depreciation on the accounting equation and financial statements LO 8-2 (The following information applies to the questions displayed below.) 0.5 points The following events apply to Gulf Seafood for the Year 1 fiscal year: eBook Hint 1. The company started when it acquired $60,000 cash by issuing common stock. 2. Purchased a new cooktop that cost $40,000 cash. 3. Earned $72,000 in cash revenue. 4. Paid $25,000 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 life of four years and an estimated salvage value of $4,000. Use straight-line depreciation. The adjusting entry was made as of December 31, Year 1. Print Exercise 8-7A Part a Required a. Record the events in general journal format and post to T-accounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record entry for issuance of common stock. Note: Enter debits before credits. Event General Journal Debit Credit 1 Journal entry worksheet Record cash paid for salaries expenses. Note: Enter debits before credits. Event General Journal Debit Credit 4 Journal entry worksheet Record depreciation expense. Note: Enter debits before credits. Event General Journal Debit Credit 5