Exercise 6-7 Effect of depreciation on the accounting equation and financial statements LO 6-3 (The following information applies to the questions displayed below] The following events opply to The Ice Cream Parlor for the 2014 fiscal year 1. The company started when t acqured $18,000 cash from the Issue of common stock 2. Purchased a new ice cream machine that cost $12.500 cash 3. Earned $20,700 In cash revenue 4. Pald $10,700 cash for salaries expense 5. Paid $4,000 cash for operating expenses 6. Adjusted the records to reflect the use of the Ice cream machine. The machine, purchased on Januory 1, 2014, has an expected useful life of five years and an estmated salvage value of $2.400 Use straight-line depreclation. The adjusting entry was made as of December 31, 2014