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Required information Exercise 8-7A (Algo) Effect of depreciation on the accounting equation and financial statements...

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Accounting

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Required information Exercise 8-7A (Algo) Effect of depreciation on the accounting equation and financial statements LO 8-2 [The following information applies to the questions displayed below] 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 $12,700 cash. 3. Earned $20,300 in cash revenue. 4. Paid $11,000 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 adjustment was made as of December 31, Year 1 . Required: a. Record the above transactions in a horizontal statements model. Note: In the Statement of Cash Flows column, use the initials (OA), an investing activity (IA), a financing activity (FA) and net change in cash (NC). Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require input

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