The following events apply to Gulf Seafood for the Year 1 fiscal year: 1. The company started when it acquired $17,000 cash by issuing common stock. 2. Purchased a new cooktop that cost $15,000 cash. 3. Earned $21,600 in cash revenue. 4. Pald $11,000 cash for salarles expense. 5. Adjusted the records to reflect the use of the cooktop. Purchased on January 1, Year 1, the cooktop has an expected useful ile of four years and an estimated salvage value of $2,000. Use straight-line depreciation. The adjusting entry was made as of December 31 , Year 1. Required a. Record the above transactions in a horizontal statements model. b. What amount of depreciation expense would Gult Seafood report on the Year 1 income statement? c. What amount of accumulated depreciation would Gulf Seafood report on the December 31, Year 2, balance sheet? d. Would the cash flow from operating activities be affected by depreciation in Year ? Complete this question by entering your answers in the tabs below. Record the above transactions in a hiorizontal statements model. (in the Cash fiow column, inclate whether the item is an operating activity (OA), an invexing wactiv. (IA), a finaniong activity (FA), or net change in cash (NC). If the element is not affected by the event, leave the cell blank. Enter any cecreases to achount talaincrr an casi outfows with a minus sign, Not all cells will require entry.) 3. Fecoru tive acove tramsdcuonts in a fioficontal statetinents mocet. b. What amount of depreciation expense would Gulf Seafood report on the Year 1 income statement? c. What amount of accumulated depreciation would Gulf Seafood report on the December 31, Year 2, balance sheet? d. Would the cash fow from operating activities be affected by depreciation in Year 1? Complete this question by entering your answers in the tabs below. Record the above transactions in a horizontal statements model, (In the Cash Fow calumn, ind cate whether the item is an operating activity (OA), an investing ocby (IA), a financing activity (FA), or net change in cash (NC). If the element is not affected by the event, leave the cell blank. Enter any decreases to account batancet cash outflows with a minus sign. Not all cells will require entry.) a. Record the above transactions in a horizontal statements model. b. What amount of depreciation expense would Gulf Seafood report on the Year 1 income statement? c. What amount of accumulated depreciation would Gulf Seafood report on the December 31, Year 2, balance sheet? d. Would the cash flow from operating activities be affected by depreciation in Year 1 ? Complete this question by entering your answers in the tabs below. b. What amount of depreciation expense would Gulf Seafood report on the Year 1 income statement? c. What amount of accumulated depreciation would Gulf Seafood report on the December 31, Year 2, balance sheet? d. Would the cash flow from operating activities be affected by depreciation in Year 1
