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The following events apply to Gulf Seafood for the Year 1 fiscal year. 1. The company started when it acquired $16,000 cash by issuing common

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The following events apply to Gulf Seafood for the Year 1 fiscal year. 1. The company started when it acquired $16,000 cash by issuing common stock. 2. Purchased a new cooktop that cost $16.700 cash. 3. Eamed $21.500 in cash revenue 4. Paid $10,400 cash for salaries expense. 3. 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 $2.000. 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 Gulf Seafood repon on the Year 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. Red A Red B to D Record the above transactions in a horizontal statements model. In the Cash Flow column indicate vabathar the item is an operating activity (OA) (IA), a financing activity (FA), or net change it cash (NC). If the element is not affected by the event leave the call blank. Enter any decreases to cash outflows with a minursign. Not all cells will require entry) Record the above transactions in a horizontal statements model. (In the Cash Flow column, indicate whether the item is an operat (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 a cash outflows with a minus sign. Not all cells will require entry) GULF SEAFOOD Horizontal Statements Model Income Statement Statement of Cash Flows Event Balance Sheet Assets Equity BV Common Retained Equipment Stock Earnings Revenue Expense Net Income Cash - + + NI #l 3. IIIIIIIII ++++ 4. 5. Bali ## ++ Req B1o D > 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, ba d. Would the cash flow from operating activities be affected by depreciation in Year 1? b. Depreciation expense.on Year 1 income statement c. Accumulated depreciation on December 31. Year 2. balance sheet d. Would the cash flow from operating activities be affected by depreciation in Year 1? ReqA

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