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The following events apply to Tracey's Restaurant for the Year $1$ fiscal year:

Started the company when it acquired $$39,000$ cash from the issue of common stock.

Purchased a new cooktop that cost $$38,000$ cash.

Earned $$52,000$ in cash revenue.

Paid $$36,000$ cash for salaries expense.

Paid $$7,000$ cash for operating expenses.

Adjusted the records to reflect the use of the cooktop. The cooktop, purchased on January $1,$ Year $1,$ has an expected useful IIfe of five years and an estimated salvage value of $$4,500.$ Use straight$-$line depreciation. The adjustment was made as of December $31,$ Year $1.$

Required

a$.$ Record the events in general ledger 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 the December $31,$ Year $2,$ balance sheet?

d$.$ Would the cash flow from operating activities be affected by depreciation in Year $2?$

Complete this question by entering your answers in the tabs below.

Req A Req B and C

Record the events in general ledger accounts under an accounting equation.

Note: Enter decreases to account balances with a minus sign. Not all cells require input.

TRACEY'S RESTAURANT

Accounting Equation for Year $1$

Assets $,=,$ Stockholders' Equityb. 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 $2?$

Complete this question by entering your answers in the tabs below.

Req A

Req B and C

Record the events in general ledger accounts under an accounting equation.

Note: Enter decreases to account balances with a minus sign. Not all cells require input.

$\backslash$table$[[$TRACEY$\text{'}$S RESTAURANT$],[$Accounting Equation for Year $1],[,$Assets,$-,$Stockholders' Equity$],[$Event$,$Cash,Cooktop,Accumulated Depreciation,$=,$Common Stock, $,$Retained Earnings$],[1,,,,=,,,],[2,,,,=,,{?}^{},],[3,,,,-,,,],[4,,,,-,,,],[5,,,,=,,,],[6,,,,=,,,],[$Totals$,$$$,$$$,$$$,0,$$$,0,$$$]]$

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