Required information [The following information applies to the questions displayed below.] The following events apply to Gulf Seafood for the Year 1 fiscal year: 1. The company started when it acquired $33,000 cash by issuing common stock. 2. Purchased a new cooktop that cost $15,300 cash. 3. Earned $21,300 in cash revenue. 4. Paid $13,400 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 five years and an estimated salvage value of $3,500. Use straight-line depreciation. The adjusting entry was made as of December 31, Year 1.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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-record depreciation expense
Required information
[The following information applies to the questions displayed below.]
The following events apply to Gulf Seafood for the Year 1 fiscal year:
1. The company started when it acquired $33,000 cash by issuing common stock.
2. Purchased a new cooktop that cost $15,300 cash.
3. Earned $21,300 in cash revenue.
4. Paid $13,400 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 five years and an estimated salvage value of $3,500. Use straight-line depreciation. The adjusting entry
was made as of December 31, Year 1.
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] The following events apply to Gulf Seafood for the Year 1 fiscal year: 1. The company started when it acquired $33,000 cash by issuing common stock. 2. Purchased a new cooktop that cost $15,300 cash. 3. Earned $21,300 in cash revenue. 4. Paid $13,400 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 five years and an estimated salvage value of $3,500. Use straight-line depreciation. The adjusting entry was made as of December 31, Year 1.
Note: Enter debits before credits.
Event
General Journal
Depreciation expense
Accumulated depreciation
Record entry
Clear entry
Debit
Credit
View general journal
Transcribed Image Text:Note: Enter debits before credits. Event General Journal Depreciation expense Accumulated depreciation Record entry Clear entry Debit Credit View general journal
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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