Required Informatlon Exerclse 6-7 Effect of depreclation on the accounting equatlon and financial statements LO 6-2 [The following Information applies to the questions displayed below. The following events apply to Gulf Seafood for the 2018 fiscal year: 1. The company started when it acquired $18,000 cash by Issulng common stock. 2. Purchased a new cooktop that cost $13,900 cash. 3. Earned $21,200 In cash revenue 4. Pald $11,800 cash for salarles 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 $2,700. Use straight-line depreciation. The adjusting entry was made as of December 31, 2018 Exercise 6-7 Part Requirec a. Record the above transactions In a horizontal statements model like the following one. In the Cash Flow column, Indicate whether the ltem is an operating activity (OA), an Investing activity (IA), a financing activity (FA) and net change In cash (NC). The letters NA Indicate that an element is not affected by the event. (In the Cash Flow column, Indicate whether the Item is an operating activlty (OA), an Investing activity (IA), a financing actlvity (FA) and net change In cash (NC). The letters NA Indicate that an element is not affected by the event. Enter any decreases to account balances and cash outflows with a minus sign.) GULF SEAFOOD Horizontal Statements Model Balance Sheet Income Statement Equity Statement of Cash Flows Assets Event Accumulated Depreciation Retained | Revenue |-| Expense |=Neti come Earnings Common CashEquipment- 2. 3. Bal Required Information Exercise 6-7 Effect of depreclatlon on the accounting equation and financlal statements LO 6-2 e following Information applies to the questions displayed belowj he following events apply to Gulf Seafood for the 2018 fiscal year: 1. The company started when It acquired $18,000 cash by Issulng common stock. 2. Purchased a new cooktop that cost $13,900 cash. 3. Earned $21,200 In cash revenue. 4. Pald $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 $2.700. Use straight-line depreciation. The adjusting entry was made as of December 31, 2018 Exercise 6-7 Part b b. What amount of depreclation expense would Gulf Seafood report on the 2018 Income statement? Depreciation Exercise 6-7 Part c c. What amount of accumulated depreclation would Gulf Seafood report on the December 31, 2019, balance sheet? Accumulated depreciation