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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 in four years and an estimated salvage value of $4.000 Use straight-aine depreciation. The adjusting entry was made as of Dec 31 Year 1 Required int o. Record the above transactions in a horizontal statements made 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 12 rint rences Complete this question by entering your answers in the tabs below. Reg Reg B to D Record the above transactions in a horizontal statements model in the cash flow column, indicate whether the item is an operating a (LA), a financing activity (FAO change in the lected by the event, leave the cell blank. Enter any de cash outflows with a minus sign. Not all will required) GULF SEAFOOD Horizontal Statement Model Balance Sheet Income Statement Assets Equity Revenue Expense BV Common Retained Equipment Slock Earnings Event Statement of Cash Flow Netcome Casti 1 2 3 4 + Reg A Reg to Record the above transactions in a horizontal statements model: (in the Cash Flow column, indicate whether the item is an operating activity (OA), an in (IA), a financing activity (FA), or not change in cash (NC). If the element is not affected by the event, leave the cell blank. Enter any decreases to account cash outflows with a minus sign. Not all cells will require entry) GULF SEAFOOD Horizontal Statements Model Balance Sheet Income Statement Equity Revenue Expense Net Income BV Common Retained Equipment Stock Earnings + Statement of Cash Flows Event ences Cash 1 2 + + 3 4 5 Bal Req BtoD> Reg A Red B to D eferences 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? b. Depreciation expense on Year 1 income statement C Accumulated depreciation on December 31, Year 2 balance sheet d. Would the cash flow from operating activities be affected by depreciation in Year 12

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