question $3$

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The following events apply to Gulf Seafood for the Year $1$ fiscal year:

The company started when it acquired $$34,000$ cash by issuing common stock.

Purchased a new cooktop that cost $$12,500$ cash.

Earned $$22,400$ in cash revenue.

Paid $$11,100$ cash for salaries expense.

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 $$2,900.$ Use straight$-$line depreciation. The adjusting entry was made as of December $31,$ Year $1.$

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a$.$ Record the events in general journal format and post to T$-$accounts.

question $4$

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$[$The following information applies to the questions displayed below.$]$

The following events apply to Gulf Seafood for the Year $1$ fiscal year:

The company started when it acquired $$34,000$ cash by issuing common stock.

Purchased a new cooktop that cost $$12,500$ cash.

Earned $$22,400$ in cash revenue.

Paid $$11,100$ cash for salaries expense.

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 $$2,900.$ Use straight$-$line depreciation. The adjusting entry was made as of December $31,$ Year $1.$

b$.$ Prepare a balance sheet and a statement of cash flows for the Year $1$ accounting period.

question $5$

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$[$The following information applies to the questions displayed below.$]$

The following events apply to Gulf Seafood for the Year $1$ fiscal year:

The company started when it acquired $$34,000$ cash by issuing common stock.

Purchased a new cooktop that cost $$12,500$ cash.

Earned $$22,400$ in cash revenue.

Paid $$11,100$ cash for salaries expense.

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 $$2,900.$ Use straight$-$line depreciation. The adjusting entry was made as of December $31,$ Year $1.$

c$.$ What is the net income for Year $1?$

d$.$ What amount of depreciation expense would Gulf Seafood report on the Year $2$ income statement?

e$.$What amount of accumulated depreciation would Gulf Seafood report on the December $31,$ Year $2,$ balance sheet?

f$.$ Would the cash flow from operating activities be affected by depreciation in Year $2?$