Herp Welb Manufacturing experienced the following events during its first accounting period: ed 1. Recognized revenue from cash sale of products. 2. Recognized cost of goods sold from sale referenced in Event 1. 3. Acquired cash by issuing common stock. 4. Pald cash to purchase raw materials that were used to make products. 5. Pald wages to production workers. 6. Pald salaries to administrative staff. 7. Recognized depreciation on manufacturing equipment. 8. Recognized depreciation on office furniture. ook Hint Required Use the following horizontal financial statements model to show how each event affects the GAAP-based balance sheet and income statement. Indicate whether the event increases (), decreases (D). If an element was not affected by the event, leave the cell blank. The first transaction has been recorded as an example. Show accumulated depreciation as a decrease in the book value of the appropriate asset account. (For changes on the statement of cash flows, Indicate whether the item is an operating activity (OA), Investing activity (IA), or financing activity (FA). If an element was not affected by the event, leave the cell blank.) Print References Event No. Income Statement Balance Sheet Assets Stockholders BV Office Equity Furn. . Equity Statement of Cash Flows Cash Inventory Com. Stk. Ret. Ear Rev Exp Netine 1. 1 ! 1 1 OA 2 . . + 3 + 4 5. 6 7 - + - B MK Gew MacBook Air Seved Help So 1. Recognized revenue from cash sale of products. 2. Recognized cost of goods sold from sale referenced in Event 1. 3. Acquired cash by Issuing common stock 4. Paid cash to purchase raw materials that were used to make products. 5. Pald wages to production workers. 6. Paid salaries to administrative staff. 7. Recognized depreciation on manufacturing equipment. 8. Recognized depreciation on office furniture. Required Use the following horizontal financial statements model to show how each event affects the GAAP-based balance sheet and income statement. Indicate whether the event increases (1) decreases (D), If an element was not affected by the event, leave the cell blank. The first transaction has been recorded as an example. Show accumulated depreciation as a decrease in the book value of the appropriate asset account. (For changes on the statement of cash flows, Indicate whether the item is an operating activity (OA). Investing activity (IA), or financing activity (FA). If an element was not affected by the event, leave the cell blank.) Event No. Balance Sheet Assets + Inventory + Stockholders' BV Office Equity Furn Income Statement Equity Cash Com Stk. Statement of Cash Flows + Rev. Exp. 1. 1 Net Inc. Ret. Ear 1 . + 1 2. 1 1 OA + 3. 4. -- +++ 5. 6. 7. +++++++ + + + + + + + 8. MacBook Air