Exercise 8-7A (Algo) Effect of depreciation on the accounting equation and financial statements LO 8-2 [The following information applies to the questions displayed below.] The following events apply to Gulf Seafood for the Year 1 fiscal year. 1. The company started when it acquired $20,000 cash by issuing common stock. 2. Purchased a new cooktop that cost $17,000 cash. 3. Earned $20,900 in cash revenue. 4. Paid $10,800 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 adjustment was made as of December 31 , Year 1 . Record the above transactions in a horizontal statements model. ste: In the Statement of Cash Flows column, use the initials (OA), an investing activity (IA), a financing activity (FA) and net ange in cash (NC). Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require input