The following events apply to Tracey's Restaurant for the Year 1 fiscal year. 1. Started the company when it acquired $24,000 cash from the issue of common stock. 2. Purchased a new cooktop that cost $23,000 cash. 3. Earned $37,000 in cash revenue. 4. Paid $21,000 cash for salaries expense. 5. Paid $7,500 cash for operating expenses. 6. Adjusted the records to reflect the use of the cooktop. The cooktop, purchased on January 1, Year 1, has an expected useful life of five years and an estimated salvage value of $4,000. 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. (Negative amounts should be indicated by a minus sign.) TRACEY'S RESTAURANT Accounting Equation for Year 1 Assets Accum. Cash Cook Top Depr. = Stockholders' Equity Com. Retained Stock Earnings Event + I > 1. Issue stk. 2. Pur. cook top 3. Rev. 4. Paid sal exp. 5. Paid op. exp. 6. Depr. exp. Totals > $ 0 S 0 $ 01 = $ 0 $ 0 b. What amount of depreciation expense would Tracey's report on the Year income statement? Depreciation expense c. What amount of accumulated depreciation would Tracey's report on the December 31, Year 2, balance sheet? Accumulated depreciation d. Would the cash flow from operating activities be affected by depreciation in Year 2? Yes No