Exercise 6-7A (Algo) Effect of depreciation on the accounting equation and financial statements LO 6-2 The following events apply to Gulf Seafood for 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 $14,800 cash 3. Earned $20,300 in cash revenue 4. Paid $12,300 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 le of four years and an estimated salvage value of $2,300. 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 Gulf Seafood report on the Year income statement? c. What amount of accumulated depreciation would Gulf Seafood report on the December 31 Year 2. balance sheet? d. Would the cash flow from operating activities be affected by depreciation in Year 12 Complete this question by entering your answers in the tabs below. apter Two Graded Homework Seved Help Save Suoma Check my work 5 Req Reg D Record the above transactions in a horizontal statements model in the Cath Pow column indicate whether the item is an operating activity (OM), an investing (A) Mancing activity (A), oraint changin (NC), the element is not affected by the event, leave the cell blank. Inter any decreases to account balu Oh otrows with a minus sign. Not all will require entry) alance Sheet Aast HIV Com Egent och QULF SEAFOOD Horten Statement Model Income Batement Equity Het Revente - Expense Nel com Earnings ftatement of Can we Cash 2 1 4 0 RD > Faded Homework Saved Help Save & Exit Check Req A Reg B to D b. What amount of depreciation expense would Gulf Seafood report on the Year 1 income statement? What amount of accumulated depreciation would Gulf Seafood 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 Accumulated depreciation on December 31. Year 2, balance sheet d. Would the cash flow from operating activities be affected by depreciation in Year 17