The following events apply to Gulf Seafood for the Year 1 fiscal year: 1. The company started when it acquired $60,000 cash by issuing common stock. 2. Purchased a new cooktop that cost $40,000 cash. 3. Earned $72,000 in cash revenue. 4. Paid $25,000 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 $4,000. Use straight-line depreciation. The adjusting entry was made as of December 31, Year 1. Required Record the events in general journal format and post to T-accounts. b. Prepare a balance sheet and a statement of cash flows for the Year 1 accounting period. c. What is the net income for Year 1 ? d. What amount of depreciation expense would Gulf Seafood report on the Year 2 income statement? e. What amount of accumulated depreciation would Gulf Seafood report on the December 31, Year 2, balance sheet
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