Required information [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 $16,800 cash. 3. Eamed $23,900 in cash revenue. 4. Pald $11,500 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 $2,100. Use straight-line depreciation. The adjustment was made as of December 31, Year 1, Required a. Record the above transactions in a horizontal statements model. (In the Statement of Cash Flows column, use the initials (OA), an Investing activity (1A), 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 require input.) Income Statement GULF SEAFOOD Horizontal Statements Model Balance Sheet Assets Stockholder's Equity Cash Equipment Common Retained Revenue (BV) Stock Earnings 19,000 19,000 Event Expense Statement of Cash Flows Net Income 1 Required a. Record the above transactions in a horizontal statements model. (In the Statement of Cash Flows column, use the initials (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 require input.) GULF SEAFOOD Horizontal Statements Model Balance Sheet Income Statement Assets Evont Stockholder's Equity Statement of Canh Equipment Common Retained Revenue Cash Expense Net Income Flows (BV) Stock Earnings 1. 19,000 19,000 2. (16,800) 16,800 3. 23,900 23,900 23,900 23,900 4. + 5. Bal 26,100 - 16,800 10,000 0 23,000 23,900 23,900 Required information [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 $16,800 cash. 3. Earned $23,900 In cash revenue. 4. Pald $11,500 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 $2,100. Use straight-line depreciation. The adjustment was made as of December 31, Year 1. b. What amount of depreciation expense would Gulf Seafood report on the Year 1 income statement? Depreciation expanse Required information 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 $16,800 cash. 3. Earned $23,900 in cash revenue. 4. Pald $11,500 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 $2,100. Use straight-line depreciation. The adjustment was made as of December 31, Year 1 c. What amount of accumulated depreciation would Gulf Seafood report on the December 31, Year 2, balance sheet? Acumulated depreciation Required information [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 $16,800 cash. 3. Earned $23,900 in cash revenue. 4. Paid $11,500 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 $2,100. Use straight-line depreciation. The adjustment was made as of December 31, Year 1. d. Would the cash flow from operating activities be affected by depreciation in Year 1? Yes No
