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Munoz Manufacturing Company experienced the following accounting events during its first year of operation. With the exception of the adjusting entries for depreciation, assume that

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Munoz 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 $59,000 cash by issuing common stock. 2. Paid $7,900 for the materials used to make its products, all of which were started and completed during the year. 3. Paid salaries of $3,800 to selling and administrative employees. 4. Paid wages of $6,700 to production workers. 5. Paid $9,700 for furniture used in selling and administrative offices. The furniture was acquired on January 1. It had a $1.700 estimated salvage value and a four-year useful life. 6. Paid $9,500 for manufacturing equipment. The equipment was acquired on January 1 It had a $1.700 estimated salvage value and a two-year useful life. 7. Sold inventory to customers for $25,900 that had cost $13,600 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).) Balance Sheet Income Statement Event No Assets BV Manuf. Cash + Inventory + Equip 59,000 + BV Office Furn Stockholders' Equity Common Ret. stock Ear. 59,000+ Rev. Exp. 11 Net Inc. . 1 + = 59, Prev 4 of 6 HE Next ements mode as indicated nere. The first event is recorded as an example (Enter a decreases to ount balan th a minus sign. For changes on the Statement of Cash Flows, indicate whether the.com is an operating activity (OA), resting activity (IA), financing activity (FA).) Balance Sheet Income Statement rent lo. Cas Assets BV Manut Inventory Equip. Cash BV Office Furn. Stockholders' Equity Common Ret. stock Ear 59,000+ Rev. Exp. Net Inc. 1 59,000 + 59,000 + 2 3 4 ++ 5b + 6b +++ 7a 75 otal

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