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The following events apply to Gulf Seafood for the Year 1 fiscal year: 1. The company started when it acquired $18,000 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 $18,000 cash by Issuing common stock. 2. Purchased a new cooktop that cost $15,200 cash. 3. Earned $23,400 in cash revenue. 4. Pald $12,500 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 $2,600. 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 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? Reg A Red B to D Record the above transactions in a horizontal statements model. In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (1A), 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 balances and cash outflows with a minus sign. Not all cells will require entry.) GULF SEAFOOD Horizontal Statements Model Balance Sheet Income Statement Aaneta Equity Statement of Canh BV Common Flows Revenue Retained Expense Net Income Equipment Stock Earnings Event Cash 1 2 4 3. 4 . 5. Bal 0 0 nec Rog BtoD> 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? 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?

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