The following events apply to Gulf Seafood for the Year $1$ fiscal year:

The company started when it acquired $$18,000$ cash by issuing common stock.

Purchased a new cooktop that cost $$16,000$ cash.

Earned $$21,300$ in cash revenue.

Paid $$11,800$ cash for salaries expense.

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 $1?$

Complete this question by entering your answers in the tabs below.

Record the above transactions in a horizontal statements model. $($In the Cash Flow column, indicate whether the item is an operating activit$)($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 decreas cash outflows with a minus sign. Not all cells will require entry.$)$

$\backslash$table$[[$GULF SEAFOOD$],[$Horizontal Statements Model$],[$Event$,$Balance Sheet,Income Statement,$\backslash$table$[[$Statement of Cash$],[$Flows$]]],[$Assets$,=,$Equity,Revenue,$-,$Expense,$=,$Net Income$],[$Cash$,+,\backslash$table$[[$BV$],[$Equipment$]],=,\backslash$table$[[$Common$],[$Stock$]],+,\backslash$table$[[$Retained$],[$Earnings$]]],[3.,,+,,=,,+,,,-,,=,,1],[4.,,+,,=,,+,,,-,,=,,p$