Problem $10-23$A $($Algo$)$ Effect of product versus period costs on financial statements LO $10-2,10-3$

Jordan 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.

Acquired $$56,000$ cash by issuing common stock.

Paid $$7,100$ for the materials used to make its products, all of which were started and completed during the year.

Paid salaries of $$3,900$ to selling and administrative employees.

Paid wages of $$6,700$ to production workers.

Paid $$8,100$ for furniture used in selling and administrative offices. The furniture was acquired on January $1.$ It had a $$1,300$ estimated salvage value and a four$-$year useful life.

Paid $$12,300$ for manufacturing equipment. The equipm$$nt was acquired on January $1.$ It had a $$1,500$ estimated salvage value and a three$-$year useful life.

Sold inventory to customers for $$26,200$ that had cost $$13,400$ to make.

Required

Use a horizontal financial statements model to show$\_$how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities $($OA$),$ investing activities $($IA$),$ or financing activities $($FA$).$ The first event is recorded as an example.

Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed.

cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities $($OA$),$ investing activities $($IA$),$ or financing activities $($FA$).$ The first event is recorded as an example. Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed.

$\backslash$table$[[\backslash$table$[[$Event$],[$Number$]],$Horizontal Financial Statements Model,$],[$Balance Sheet,Income Statement,$\{$

$\backslash$table$[[$Statement of Cash$],[$Flows$]]\}],[$Assets$,$Stockholders' equity$],[$Cash$,+,$Inventory,$+,\backslash$table$[[$Book Value$],[$Manufacturing$],[$Equipment$]],+,\backslash$table$[[$Book$],[$Value$],[$Office$],[$Furniture$]],=,()$ stock $,+,\backslash$table$[[$Retained$],[$Earnings$]],$Revenue,$-,$Expenses,$\{$f$838$f$204$b$-08$c$1-4167-$bb$4$a$-$c$585728$c$6$e$0$c$\}$

$\backslash$table$[[$Net$],[$Income$]$