Question
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
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 $15,900 cash. 3. Earned $23,000 in cash revenue. 4. Paid $10,600 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 $2,200. Use straight-line depreciation. The adjusting entry was made as of December 31, Year 1. 1:10:40 Required 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?
What amount of depreciation expense would Gulf Seafood report on the Year 1 income statement? What amount of accumulated depreciation would Gulf Seafood report on the December 31 , Year 2 , balance sheet? Complete this question by entering your ankwers in the tabs below. Record the above transactions in a horizontal statements model. (In the Cash Flow colurmn, indicate whether the itern is an operaking ackuvy (IA). a financing activity (FA), or net change in cash (NC). If the cloment is not affected by the event, leave the cell btank. Enter any deereat Cash outflows with a minus stgn. Not all cells will require entry.)Step by Step Solution
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