Enabled: A Cowboy Ice Cream (CIC) had the following events in the Year 1 fiscal year 1. The company started when it acquired 517.000 cash by issuing common stock 2 Purchased a new cooktop that cost $14,500 cash 3. Earned $22,600 in cash revenue. 4. Paid $13.000 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 $2.400. Use straight-line depreciation. The adjusting entry was made as of December 31, Year 1 Required a. Record the above transactions in a horzontal statements model 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? Comuntate 1 Red Reg B to D Record the above transactions in a horizontal statements model. (In the Cash Flow column, indicate whether the item is an opera (TA), a financing activity (FA), or net change in cash (NC). If the element is not affected by the event, leave the cell blank. Enter cash outflows with a minus sign. Not all cells will require entry.) COWBOY ICE CREAM COMPANY Horizontal Statements Model Balance Sheet Income Statement Assets Equity BV Revenue Common Retained Expense Equipment Earnings Statement of Cash Flows Event Net Income Cash Stock + 1 2 3 4 +++++ 6 + III Bai