The following events apply to Tracey's Restaurant for the Year $1$ fiscal year;

Started the company when it acquired $$23,000$ cash from the issue of common stock.

Purchased a new cooktop that cost $$22,000$ cash.

Earned $$36,000$ in cash revenue.

Paid $$20,000$ cash for salaries expense.

Paid $$7,400$ cash for operating expenses.

Adjusted the records to reflect the use of the cooktop. The cooktop, purchased on January $1,$ Year $1,$ has an expected useful life of four years and an estimated salvage value of $$3,500.$ Use straight$-$line depreciation. The adjusting entry was made as of December $31,$ Year $1.$

Required

a$.$ Record the events in general ledger accounts under an accounting equation.

b$.$ What amount of depreciation expense would Tracey's report on the Year $2$ income statement?

c$.$ What amount of accumulated depreciation would Tracey's report on the December $31,$ Year $2,$ balance sheet?

d$.$ Would the cash flow from operating activities be affected by depreciation in Year $2?$

Record the events in general ledger accounts under an accounting equation. $($Enter decreases to account balances with a minus sign. Not all cells require input.$)$

TRACEY'S RESTAURANT

Accounting Equation for Year $1$

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