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 $18,000 cash by issuing common stock. 2. Purchased a new cooktop that cost $15,800 cash. 3. Earned $23,300 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 1 , the cooktop has an expected useful life of four years and an estimated salvage value of $2,800. Use straight-line depreciation. The adjustment was made as of December 31 , Year 1. Exercise 8-7A (Algo) Part a ?equired: 1. Record the above transactions in a horizontal statements model. Jote: In the Statement of Cash Flows column, use the initials (OA), an investing activity (IA), a financing activity (FA) and net hange in cash (NC). Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require input