Acquired $68,000 cash by issuing common stock. 1. Paid $8,700 for the materials used to make its products, all of which were started and completed 2. during the year. 3. Paid salaries of $4,500 to selling and administrative employees. 4. Paid wages of $10,000 to production workers. Paid $9,600 for furniture used in selling and administrative offices. The furniture was acquired on 5. January 1. It had a $1,600 estimated salvage value and a four-year useful life. Paid $16,000 for manufacturing equipment. lhe equipment was acquired on January 1. It had a 6. $1,000 estimated salvage value and a five-year useful life. 7. Sold inventory to customers for $35,000 that had cost $14,000 to make. Required Explain 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. Financial Statements Model Event Manuf. Office Cash + Inventory + Equip. + Furn. 68,000 Equity Com. Stk. + Ear. 68,000 Net Inc. Cash Flow 68,000 FA Record accumulated depreciation as negative amounts in these columns.