Acquired $$56,000$ cash by issuing common stock.

Paid $$7,400$ for the materials used to make its products, all of which were started and completed during the year.

Paid salaries of $$4,400$ to selling and administrative employees.

Paid wages of $$6,800$ to production workers.

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.

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.

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.