Required information Exercise 6-7 Effect of depreciation on the accounting equation and financial statements LO 6-2 The following information applies to the chestions displayed below) The following events apply to Gulf Seafood for the 2018 fiscal year: 1. The company started when it acquired $16,000 cash by Issuing common stock 2. Purchased a new cooktop that cost $14,100 cash 3. Earned $23,100 in cash revenue 4. Paid $11.800 cash for salaries expense. 5. Adjusted the records to reflect the use of the cooktop. Purchased on January 1, 2018, the cooktop has an expected useful life of four years and an estimated salvage value of $2,100. Use straight line depreciation. The adjusting entry was made as of December 31, 2018 Exercise 6-7 Parta Required a. Record the above transactions in a horizontal statements model like the following one. (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). If the element is not affected by the event, leave the cell blank. Enter any decreases to account balances and cash outflows with a minus sign.) Balance Sheet GULF SEAFOOD Horizontal Statements Model Income Statement Equity Statement of Cash Common Flows Retained ed Revenue - Expense Net Income Stock Earnings Event Cash - Equipment Accumulated Depreciation