Required Information Exercise 8-7A (Algo) 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 $34,000 cash by Issuing common stock. 2. Purchased a new cooktop that cost $15,300 cash. 3. Earned $21,600 in cash revenue. 4. Paid $12,300 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 $3,400. Use straight-line depreciation. The adjusting entry was made as of December 31, Year 1. Exercise 8-7A (Algo) Part b b. Prepare a balance sheet and a statement of cash flows for the Year 1 accounting period. Complete this question by entering your answers in the tabs below. Req B1 Req B2 Prepare a balance sheet for the Year 1 accounting period. (Enter amounts to be deducted with a minus sign.) GULF SEAFOOD Ralanna Sheat 2 of 6 b. Prepare a balance sheet and a statement of cash flows for the Year 1 accounting period. Complete this question by entering your answers in the tabs below. ts Req B1 Req B2 Book Hint Prepare a balance sheet for the Year 1 accounting period. (Enter amounts to be deducted with a minus sign.) Print References Assets GULF SEAFOOD Balance Sheet As of December 31, Year 1 Total Assets Liabilities Stockholders equity 0 0 Total Stockholders' Equity O Total liabilities and stockholders' equity S Required information Req B1 Req B2 Prepare a statement of cash flows for the Year 1 accounting period. (Enter cash outflows with a minus sign.) GULF SEAFOOD Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities: Net cash flow from operating activities Cash flows from investing activities: $ 0 Net cash flow from investing activities Cash flows from financing activities: Net cash flow from financing activities Net change in cash Ending cash balance Reg B1 0 0 1