The following events apply to Guiltf Seafood for the 2018 fiscal year 1. a. The company started when it acquired $17,000 cash by issuing common stock.
b. Purchased a new cooktop that cost $16,900 cash. Earned $22,500 in cash revenue.
c. Paid $10,300 cash for salaries expense.
d. 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 $2,200. Use straight-line depreciation. The adjustment was made as of December 31, Year 1.

Required:
Record the above transactions in a horizontal statements model.

Gulf Seafood

Horizontal Statements Model:

    Balance Sheet                             Income Statement               Cash Flows

    Assets  =  Liabilities + Equity    Revenue - Expenses = Income

a.   $17,000               0  + $17,000                                                      FA

b.   $16,900 ($16,900)                                                                         IA

   $22,500                     $22,500  $22,500                                      OA

c. ($10,300)                    ($10,300)                  ($10,300)                     OA

d.  ($3,675)                      ($3,675)                   ($3,675)                      None

  $25,525         =    0 + $25,525  $22,500 - $13,675  = $8,825

Explanation:

a) Data and Analysis:

a. Cash $17,000 Common stock $17,000

b. Equipment $16,900 Cash ($16,900)

Cash $22,500 Revenue $22,500

c. Cash ($10,300) Salaries Expense ($10,300)

d. Accumulated Depreciation ($3,675) Depreciation Expense ($3,675)

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explanation:

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