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 $13,200 cash. 3. Earned $20,500 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 $2,100. Use straight-line depreciation. The adjusting entry was made as of December 31, Year 1. Required a. Record the above transactions in a horizontal statements model. 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 17 Complete this question by entering your answers in the tabs below. Reg 8 to D Record the above transactions in a horizontal statements model. (In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), a financing activity (FA), or net change in cash (NC). If the element is not affected by the event, leave the cell blank. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells will require entry.) Req A Event 1. 2 3 4 5 Bal Cash Assets * + Balance Sheet BV Equipment Common Stock GULF SEAFOOD Horizontal Statements Model Equity . . Retained Earnings Revenue Income Statement Expense Net Income Statement of Cash Flows
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 $13,200 cash. 3. Earned $20,500 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 $2,100. Use straight-line depreciation. The adjusting entry was made as of December 31, Year 1. Required a. Record the above transactions in a horizontal statements model. 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 17 Complete this question by entering your answers in the tabs below. Reg 8 to D Record the above transactions in a horizontal statements model. (In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), a financing activity (FA), or net change in cash (NC). If the element is not affected by the event, leave the cell blank. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells will require entry.) Req A Event 1. 2 3 4 5 Bal Cash Assets * + Balance Sheet BV Equipment Common Stock GULF SEAFOOD Horizontal Statements Model Equity . . Retained Earnings Revenue Income Statement Expense Net Income Statement of Cash Flows
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
Subject: accounting
Transcribed Image Text: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 $13,200 cash.
3. Earned $20,500 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 $2,100. Use straight-line depreciation. The adjusting entry was made as of December
31, Year 1.
Required
a. Record the above transactions in a horizontal statements model.
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?
Complete this question by entering your answers in the tabs below.
Reg A
Record the above transactions in a horizontal statements model. (In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity
(IA), a financing activity (FA), or net change in cash (NC). If the element is not affected by the event, leave the cell blank. Enter any decreases to account balances and
cash outflows with a minus sign. Not all cells will require entry.)
Event
1.
2
3
4
5
Bal
Reg 8 to D
Cash
Assets
+
+
Balance Sheet
BV
Equipment
Common
Stock
GULF SEAFOOD
Horizontal Statements Model
Equity
+
+
*
Retained
Earnings
0
Revenue
Income Statement
Expense
Net Income
Statement of Cash
Flows
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education