1. Acquired $56,000 cash by issuing common stock. 2. Paid $7,400 for the materials used to...

 

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1. Acquired $56,000 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 $4,400 to selling and administrative employees. 4. Paid wages of $6,800 to production workers. 5. Paid $7,000 for furniture used in selling and administrative offices. The furniture was acquired on January 1. It had a $1,000 estimated salvage value and a three-year useful life. 6. Paid $7,900 for manufacturing equipment. The equipment was acquired on January 1. It had a $1,300 estimated salvage value and a two-year useful life. 7. Sold inventory to customers for $26,800 that had cost $13,100 to make. Required 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. Note: Enter decreases to account balances with a minus sign. 1. Acquired $56,000 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 $4,400 to selling and administrative employees. 4. Paid wages of $6,800 to production workers. 5. Paid $7,000 for furniture used in selling and administrative offices. The furniture was acquired on January 1. It had a $1,000 estimated salvage value and a three-year useful life. 6. Paid $7,900 for manufacturing equipment. The equipment was acquired on January 1. It had a $1,300 estimated salvage value and a two-year useful life. 7. Sold inventory to customers for $26,800 that had cost $13,100 to make. Required 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. Note: Enter decreases to account balances with a minus sign.