1. Acquired $52,000 cash by issuing common stock. 2. Paid $7,400 for the materials used to
make its products, all of which were started and completed during the year. 3. Paid salaries of
$3,700 to selling and administrative employees. 4. Paid wages of $6,700 to production workers.
5. Paid $4,700 for furniture used in selling and administrative offices. The furniture was acquired
on January 1. It had a $1,500 estimated salvage value and a two-year useful life. 6. Paid $13,400
for manufacturing equipment. The equipment was acquired on January 1 . It had a $1,700
estimated salvage value and a three-year useful life. 7. Sold inventory to customers for $25,100
that had cost $14,000 to make. Required Indicate how these events would affect the balance
sheet and income statement by recording them in a horizontal financial statements model as
indicated here. The first event is recorded as an example. (Enter any decreases to account
balances with a minus sign. For changes on the Statement of Cash Flows, indicate whether the
item is an operating activity (OA), investing activity (IA), financing activity (FA).).
1. Acquired $52,000 cash by issuing common stock. 2. Paid $7,400 for .pdf
1. 1. Acquired $52,000 cash by issuing common stock. 2. Paid $7,400 for the materials used to
make its products, all of which were started and completed during the year. 3. Paid salaries of
$3,700 to selling and administrative employees. 4. Paid wages of $6,700 to production workers.
5. Paid $4,700 for furniture used in selling and administrative offices. The furniture was acquired
on January 1. It had a $1,500 estimated salvage value and a two-year useful life. 6. Paid $13,400
for manufacturing equipment. The equipment was acquired on January 1 . It had a $1,700
estimated salvage value and a three-year useful life. 7. Sold inventory to customers for $25,100
that had cost $14,000 to make. Required Indicate how these events would affect the balance
sheet and income statement by recording them in a horizontal financial statements model as
indicated here. The first event is recorded as an example. (Enter any decreases to account
balances with a minus sign. For changes on the Statement of Cash Flows, indicate whether the
item is an operating activity (OA), investing activity (IA), financing activity (FA).)
