c. Prepare the general journal entry to record the purchase. Exercise 8-7A Effect of depreciation on the accounting equation and financial statements The following events apply to Gulf Seafood for the 2016 fiscal year: 1. The company started when it acquired S60,000 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, 2016, 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, 2016. Required a. Record the events in general journal format and post to T-accounts. b. Prepare a balance sheet and a statement of cash flows for the 2016 accounting period. e. What is the net income for 2016? d. What amount of depreciation expense would Gulf Seafood report on the 2017 income statement? e. What amount of accumulated depreciation would Gulf Seafood report on the December 31, 2017, balance sheet? f. Would the cash flow from operating activities be affected by depreciation in 2017? ACTO Chat Home Tec nut Page Fomuudet X Arial XA Geral Mestral Linked Cell Norma Conditional Forms Check Cell Formatting i Calcon Nato Copy Explanatory.pl 04 Merge SA *rnt A5 ELIA Cal Raceed the eveningen met and post to accounts ACCOUNT Rev Det Credit Cach Common Stock 1 2 3 10 Egun Cooktop Depreciation Expenso 10 115 10 10 Accu Deprecation 5 Wwoof depreciation expense would also part on the income statement? What med deprecan would Gul Sport on the December 31 Yabance sheet We cachoengselected by dep Your 7 EG 2 Type here to wich