Gunn 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.

1.	Acquired $54,000 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.	Paid salaries of $4,100 to selling and administrative employees.
4.	Paid wages of $6,300 to production workers.
5.	Paid $5,400 for furniture used in selling and administrative offices. The furniture was acquired on January 1. It had a $2,000 estimated salvage value and a two-year useful life.
6.	Paid $11,200 for manufacturing equipment. The equipment was acquired on January 1. It had a $1,300 estimated salvage value and a three-year useful life.
7.	Sold inventory to customers for $25,300 that had cost $13,100 to make.

Required

Show how these events would affect the balance sheet, income statement, and statement of cash flows by recording them in a horizontal financial statements model as indicated here. Also, in the Cash Flow column, indicate whether the cash flow is for operating activities (OA), investing activities (IA), or financing activities (FA). Use NA to indicate that an element is not affected by the event. The first event is recorded as an example. (Enter any decreases to account balances and cash outflows with a minus sign.)

GUNN MANUFACTURING COMPANY Financial Statements Model Assets Equity Income Statement Statement of Cash Flow Event Office Furniture Common stock Retained Earnings Net Income No. Cash +Inventory+Manufacturing Inventory+ RevenueE - Expense Equipment 54,000 + = 54,000 54,000 FA 2 5a. 5b, 6a. 6b. 7a. 7b. Total 54,000 0= 54,000 + 0 54,000