Help Save & Exit Submit Fanning Manufacturing Company experienced the following accounting events during its first year of operation. With the exception of the adjusting entries for depreciation, assume that all transactions are cash transactions and that financial statement data are prepared in accordance with GAAP. 1. Acquired $57,000 cash by issuing common stock. 2. Paid $7.300 for the materials used to make its products, all of which were started and completed during the year, 3. Pald salaries of $4.100 to selling and administrative employees. 4. Paid wages of $6.900 to production workers 5. Paid $5.700 for furniture used in selling and administrative offices. The furniture was acquired on January 1. It had a $1,900 estimated salvage value and a two year useful life, 6. Paid $9,000 for manufacturing equipment. The equipment was acquired on January 1. It had a $1,200 estimated salvage value and a two-year useful life. 7. Sold Inventory to customers for $26.800 that had cost $13,400 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. (Enter decreases to account balances with a minus sign.) Income Statement Event No. Balance Sheet Assets Cash Manuf. Office - Inventory + Equip Furn. 57,000 + + Equity Common stock 57,000 + + Ret. Ear Rev. Exp. Net Inc. 1 + = 2 + + 3 + + + + + +++ 5a 5b 6a + + 6b 7a 7b + Total