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Could someone please help me on this problem. I have most of it completed but having a brain block on the section that is highlighted.
Could someone please help me on this problem. I have most of it completed but having a brain block on the section that is highlighted.
Gulf Seafood 2018 Fiscal Year Common Stock Issue $60,000.00 Purchase New Cooktop $40,000.00 Earned Revenue $72,000.00 Salaries Expense $25,000.00 Adjusted the records to reflect the use of the cooktop. Purchased on January 1, 2018, 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, 2018. A. Record the previous transactions in a horizontal statements model like the following one Balance Sheet Event Common Stock Issue Equip. Cooktop Salaries Exp. Earned Revenue Depreciation Exp. Net Cash Flow Cash + -60000 40000 25000 72000 Equip Assets = Equity - A. Depr. = Com. Stock + Ret. Earn. 60000 -40000 72000 -9000 I believe I did these next ones correctly B. What amount of depreciation expense would Gulf Seafood report on the 2018 income statement? Using the straight line method of cost - residual value / useful life $40,000 - $4,000 / 4 years $9,000 per year C. What amount of accumulated depreciation would Gulf Seafood report on the December 31, 2019, balance sheet? Accumulated depreciation for 2018 Accumulated depreciation for 2019 $9,000 $9,000 $18,000 Income Statem Rev. D. Would the cash flow from operating activities be affected by depreciation in 2018? No, the statement of cash flows is not affected since the depreciation expense is charged to assets is non-cash since cash is not involved Income Statement Exp. = Net Inc. -25000 9000 Statement of cash flows -25000 72000Step by Step Solution
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