HLR Correct and incorrect from your previous attempt Required information 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 Year 1 fiscal year. 1. The company started when it acquired $19,000 cash by issuing common stock. 2 Purchased a new cooktop that cost $13,000 cash. 3. Earned $22,600 in cash revenue. 4. Paid $11.700 cash for salaries expense. 5. Adjusted the records to reflect the use of the cooktop. Purchased on January 1 Year the cooktop has an expected useful life 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. Exercise 8-7A Parta Required a. Record the above transactions in a horizontal statements model. (In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), a financing activity (FA) and net change in cash (NC). Enter any decreases to account balances and cash outflows with a minus sign. Not all cells in the Statement of Cash Flows column may require an input - leave cells blank if there is no corresponding input needed.) GULF SEAFOOD Horizontal Statements Model Income Statement Balance Sheet Statement of Cash Flows Equity Assets Net Income Revenge Expense Event Cash Retained Earnings Accumulated Depreciation Equipment Common Stock 19.000 + 1 + 13,000 looooo 22.600 - 19,000 FA (13.000) 22.500 22 600 OA 11.700 (11 700) OA (2.675) 31525 16,900 19.000 x+ 22 600 x + + 2. 3 22600 (11 700) 2675) 8 225 + 11700- 2.675 14 375 4 . 22.600 5 + Bal 41.600 13.000 Red Sextinder response was expected in a celora 2.675 2675 19.000 Band calculation incorrect points deduced