Question

Required information The following information applies to the questions displayed below) 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 $15,600 cash. 3. Earned $20,200 in cash revenue 4. Paid $10.900 cash for salaries expense. 5. Adjusted the records to reflect the use of the cooktop Purchased on January 1, 2018, the cooktop has an expected useful life of four years and an estimated salvage value of $2,700. Use straight-line depreciation. The adjusting entry was made as of December 31, 2018

Answer 1

	Balance sheet					Income statement
	Assets			Equity
Event	cash	Equipment	Accumulated	Common	Retained	Revenue	Expense	Net	Statement of cash
			Depreciation	Stock	Earnings			income	flow
1	18,000			18,000					18,000	FA
2	-15,600	15,600							-15,600	IA
3	20,200				20,200	20,200		20,200	20,200	OA
4	-10,900				-10,900		-10,900	-10,900	-10,900	OA
5			-3,225		-3,225		-3,225	-3,225		NA
Bal	11,700	15600	-3225	18,000	6075	20200	-14125	6075	11,700	NC
b)	Depreciation expense			3,225
c)	Accumulated depreciation			6450
d)	No