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 $14,200 cash. 3. Earned $22,100 in cash revenue. 4. Paid $11,300 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 $2,400. Use straight-line depreciation. The adjustment was made as of December 31, Year 1. Exercise 8-7A (Algo) Part a Required: a. Record the above transactions in a horizontal statements model. Note: 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. GULF SEAFOOD Horizontal Statements Model Income Statement Statement of Cash Flows Expense Net Income Balance Sheet Assets = Event Stockholder's Equity Cash + Equipment (BV) = Common Stock Retained Earnings Revenue 1. 2. 3. 4. 5. Balance S Chec

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 $14,200 cash. 3. Earned $22,100 in cash revenue. 4. Paid $11,300 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 $2,400. Use straight-line depreciation. The adjustment was made as of December 31, Year 1. Exercise 8-7A (Algo) Part a Required: a. Record the above transactions in a horizontal statements model. Note: 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. GULF SEAFOOD Horizontal Statements Model Income Statement Statement of Cash Flows Expense Net Income Balance Sheet Assets = Event Stockholder's Equity Cash + Equipment (BV) = Common Stock Retained Earnings Revenue 1. 2. 3. 4. 5. Balance S Chec

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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