a. for the vents and general journal format and post to T-accounts
b. prepare a balance sheet and a statement of cash flow's for the year one accounting period
c. what is the net income for year 1?
d. what amount of depreciation expense would Gulf report on the year 2 income statement?
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) The following events apply to Gulf Seafood for the Year 1 fiscal year 1. The company started when it acquired $30,000 cash by issuing common stock 2. Purchased a new cooktop that cost $15,900 cash 3. Earned $20100 in cash revenue. 4. Paid $12,100 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 five years and an estimated salvage value of $2700Use straight-line depreciation. The adjusting entry was made as of December 31, Year 1, Exercise 8-7A Porta Required o. Record the events in general journal format and post to Taccounts. (if no entry is required for a transaction event, select "No journal entry required" in the first account field.) Prey 119 Required information EX: A Record entry for issuance of common stock. B Record purchase of equipment for cash. C Record cash received from revenue. D. Record cash paid for salaries expenses. E Record depreciation expense. Credit Note: = journal entry has been entered Record entry an Beg Bal Beg Bal 1 of 4 End. Bal End. Bal Accumulated Depr Book Common Stock Beg Bal Beg Bal AK ferences End. Bal End, Bal Salon Revenue Salarios Expense Beg Bal Beg Bal End Bal End. Bal b. Prepare a balance sheet and a statement of cash flows for the Year 1 accounting period. (Amounts to be deducted s indicated by a minus sign.) GULF SEAFOOD Balance Sheet As of December 31, Year 1 Assets 0 0 Total Assets Liabilities Stockholders' equity Total stockholders' equity Total liabilities and stockholders' equity 0 0 $ GULI SEAFOOD Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities: 5 $ Net cash flow from operating activities Cash flows from investing activities: 0 Net cash flow from investing activities Cash flows from financing activities Net cash flow from financing activities Net change in cash 0 0 Ending cash balance $ 0 The following events apply to Gulf Seafood for the Year 1 fiscal year 1. The company started when it acquired $30,000 cash by issuing common stock. 2. Purchased a new cooktop that cost $15,900 cash 3. Earned $20,100 in cash revenue. 4. Paid $12,100 cash for salaries expense. 5. Adjusted the records to reflect the use of the cooktop. Purchased on January 1, Year 1, the cookte useful life of five years and an estimated salvage value of $2,700. Use straight-line depreciation. was made as of December 31, Year 1 Exercise 8-7A Part c c. What is the net income for Year 1? Net Income 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) The following events apply to Gulf Seafood for the Year 1 fiscal year: 1. The company started when it acquired $30,000 cash by issuing common stock. 2. Purchased a new cooktop that cost $15,900 cash. 3. Earned $20,100 in cash revenue. 4. Paid $12.100 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 five years and an estimated salvage value of $2,700. Use straight-line depreciation. The adjusting entry was made as of December 31, Year 1. 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.)
