balewarenhen Saved Help Save & E Sue Cowboy Ice Cream (CIC) had the following events in the Year 1 fiscal year: 1. The company started when it acquired $17,000 cash by issuing common stock. 2. Purchased a new cooktop that cost $16,800 cash. 3. Earned $21,900 in cash revenue. 4. Paid $10,300 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 $2,600. 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 1income 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? Complete this question by entering your answers in the tabs below. ReqA Reg to D Record the above transactions in a horizontal statements model. In the cash flow column, indicate whether the item is an operating activity (OA), an investing LIA), anancing activity (FA), or not change in cash (NC). Ir the element is not affected by the event, leave the cell bank Enter any decreases to account balances and cash outfiow with a minus sign Not all cells will require entry) COWBOY ICE CREAM COMPANY Horizontal Statements Model Exam 2 Saved Help 7 Complete this question by entering your answers in the tabs below. Reg A Reg B to D 25 points Record the above transactions in a horizontal statements model. In the Cash Flow column, indicate whether the item is an operating activity (O (IA), a financing activity (FA), or net change in cash (NC). If the element is not affected by the event, leave the cell blank. Enter any decreasest cash outflows with a minus sign. Not all cells will require entry) 01:38:53 COWBOY ICE CREAM COMPANY Horizontal Statements Model Income Statement Event Balance Sheet Assets Equity BV Common Retained Equipment Stock Earnings Statement of Coal Flows Ravenue Expense Not Income Cash 1 2 3. + + + + 4 5 0 0 0 0 Bal 0 . Reg B to D > MC W 10 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? Complete this question by entering your answers in the tabs below. Reg A Req B to D -38:43 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 17 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? ( ReqA USD Next >
