Answer Happy

Required information [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 $19,000 cash by issuing common stock. 2. Purchased a new cooktop that cost $12,800 cash. 3. Earned $20,400 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 $2,800. 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. (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.) Event 1. 2. 3 4. 5. Bal Cash Assets Balance Sheet Equipment (BV) 0 GULF SEAFOOD Horizontal Statements Model Stockholder's Equity Common Stock Retained Earnings Revenue Income Statement Expense 01= Net Income 0 Statement of Cash Flows

b. What amount of depreciation expense would Gulf Seafood report on the Year 1 income statement? Depreciation expense

c. What amount of accumulated depreciation would Gulf Seafood report on the December 31, Year 2, balance sheet? Accumulated depreciation