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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 $14,900 cash. 3. Earned $23,200 in cash revenue. 4. Pald $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 $2,900. 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. Reg A Req 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 cash outflows with a minus sign. Not all cells will require entry) (LA) Financing activity (FA), or net change in cash (NC) If the element is not affected by the event, leave the cell blank. Enter any decrease GULF SEAFOOD Horizontal Statements Model Complete this question by entering your answers in the tabs below. ReqA Reg 8 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 (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 balanc cash outflows with a minus sign. Not all cells will require entry) GULF SEAFOOD Horizontal Statements Model Balance Sheet Income Statement Assets Equity BV Common Retained Revenue Cash Expense Net Income Equipment Stock Earnings 18.000 18,000 Event Statement of Cash Flow 1 2 3 . . . + + 4 5 Bal 18.000 0 18,000 0 a 0 Reg 100> Complete this question by entering your answers in the tabs below. Reg A Req B to D b. What amount of depreciation expense would Gulf Seafochi 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? b. Depreciation expense on Year 1 income statement c. Accumulatod 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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