Business, 22.05.2020 21:58, krystalhurst97

The following events apply to Gulf Seafood for the 2018 fiscal year:

1. The company started when it acquired $18,000 cash by issuing common stock.
2. Purchased a new cooktop that cost $13,100 cash. Earned $22,300 in cash revenue.
3. Paid $10,600 cash for salaries expense.
4. 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 events in general journal format and post to T-accounts.
b. Prepare a balance sheet and a statement of cash flows for the 2018 accounting period.
c. What is the net income for 2018?
d. What amount of depreciation expense would Gulf Seafood report on the 2019 income statement?
e. What amount of accumulated depreciation would Gulf Seafood report on the December 31, 2019, balance sheet?
f. Would the cash flow from operating activities be affected by depreciation in 2019?

Answers: 3

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The following events apply to Gulf Seafood for the 2018 fiscal year:

1. The company sta...