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 $8,000 for the materials used to make its products, all of which were started and completed during the year. 3. Paid salaries of $4,100 to selling and administrative employees. 4. Paid wages of $6,400 to production workers. 5. Paid $3,300 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. Paid $13,100 for manufacturing equipment. The equipment was acquired on January 1. It had a $1,700 estimated salvage value and a three-year useful life. 7. Sold inventory to customers for $26,100 that had cost $13,200 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.) 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.) X Answer is not complete. Balance Sheet Income Statement Event No. Assets Cash Equity Common + stock + Inventory Manuf. Equip. + Office Furn. + Ret. Ear. Rev. Exp. Net Inc. 1 57,000 + + + = 57,000 + 2 (8,000) + + + + = (8,000) x 4,100 3 + + + (4,100) (6,400) (8,000) X (4,100) (6,400) X 4 + + + = + 6,400 X = 5a (3,300) + + 3,300 + 5b + + + (1,100) + 1,100 (1,100) (13,100) + + 13,100 + + 6b + + (1,700) X + + 1,700 7a 26,100 + + + + 26,100 (1,700) X 26,100 (13,200) (8,400) 7b + + + = + 13,200 (13,200) (13,200) Total 48,200 + + 11,400 + 2,200 = 57,000 + 0 26,100 18,500