The followng events apoly to Tracey's Restauiant for the Year 1 fiscalyesr 1. Started the...
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The followng events apoly to Tracey's Restauiant for the Year 1 fiscalyesr 1. Started the compary when it acusired $20,000 cash from the issue of common stock. 2. Purchased a new cooktop that cost $19,000 cash I. Farned $33,000 in cash revenue. 4, Psid $17000 cosh for 3a aieries expense. 5. Paid $7500 cosh for operating expenses. 6. Adjusted the records to reflect the use of the cooktop. The cooktop, purctiased on January 1 , Year t, has an expexted useful ife of four years and an estimated satvage value of $2,000. Use straight-ine depreciation. The od,ustment was made as of December 31 , Year 1 . Required: a. Recond the events in accounts under an accounting equation. Note: Negative amounts should be indicated by a minus sign. b. What amount of depreciation expense would Tracey's report on the Year 2 income statement? c. What amount of accumulated depreciation would Tracey's report on the December 31, Year 2, balance sheet? d. Would the cash flow from operating activities be affected by depreciation in Year 2? Yes No
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