Exercise 8-7A (Algo) Effect of depreciation on the accounting equation and financial statements LO 8.2 [The following information apolies to the questions displayed below] The fothowing events apply to Guit Seafood for the Year 1 fiscal yeat 1. The company started when it acquired $34,000 casti by issuing common stock. 2. Purchased a new cooktop that cost $12.400cash. 3. Farned $21,200 ir cashievenue 4. Paid $11,900 cash for salanes 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 live years and an estimafed salvage value of $3,400 Use straight-line deprectation. The adjusting entry was made as of December 31 , Year 1