the following events apply to tracey's restaurant for the year 1 fiscal year:
1. started the company when it acquired 27000 cash from the issue of common stock
2. purchased a new cooktop that cost 26000 cash
3. earned 40000 in cash revenue
4. paid 24000 cash for salaries expense.
5. paid 7800 cash for operating expenses
6. adjusted the records to reflect the use of the cooktop. the cooktop purchased on january 1 year 1 has an expected useful life of four years and an estimated salvage of 5500. use straight line depreciation. the adjustment was made as of december 31 year 1.
a. record the events in accounts under an accounting equation.
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 december 31 year 2 balance sheet
d. would the cash flow from operating activities be affected by depreciation in year 2