Exercise 8-7A 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 Yeart fiscal year. 1. The company started when it acquired $35.000 cash by Issuing common stock 2 Purchased a new cooktop that cost $13.800 cash 3. Earned $18.900 in cash revenue 4. Paid $12.700 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 five years and an estimated salvage value of $3,500. Use straight-line depreciation. The adjusting entry was made as of December 31 Year 1 Exercise 8-7A Porta Required a. Record the events in general journal format and post to T-accounts. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) Exercise 8-7A Part b b. Prepare a balance sheet and a statement of cash flows for the Year 1 accounting period. (Amounts to be deducted should be indicated by a minus sign)