-2, 10-3 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 $7,800 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. Pald wages of $6,500 to production workers. 5. Paid $5,500 for furniture used in selling and administrative offices. The furniture was acquired on January 1. It had a $1.100 estimated salvage value and a four-year useful life. 6. Pald $7.600 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 $26,300 that had cost $13.700 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).) Balance Sheet Event No. Income Statement Cash Flow Cash Assets Stockholders' Equity + Inventory + BW Manuf. By Office Common Ret Equip. Furn. stock Ear. + + + = 57,000+ + + = Rev. Exp. Net Inc. 1 57,000 2 57.000 FA 4 3 = - + + = + 4 + = 1 = 53 + + - = + + - de + + + ob Ta + + + = = + = Total 57.000 01 - + 0 = 57.000 0 0 E 0 57 000