Adams 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 $58,000 cash by issuing common stock. 2. Paid $7,000 for the materials used to make its products , all of which were started and completed during the year. 3. Pald salaries of $3,400 to seling and administrative employees. 4. Paid wages of $6,600 to production workers 5. Paid $4,500 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 two-year useful life. 6. Pald $9,000 for manufacturing equipment. The equipment was acquired on January 1. It had a $1.200 estimated solvage value and a two-year useful life 7. Sold inventory to customers for $25,000 that had cost $13,800 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):) 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 Assets Cash + Inventory BV Manuf Equip 58.000 - BV Office Furn Stockholders' Equity Common Ret stock Ear 58,000 Rev. Exp Net Inc 1 + 58,000 FA 2 3 4 56 6b - - - 7a 75 ..