Problem 10-23A (Algo) Effect of product versus period costs on financial statements LO 10-2, 10-3 Rooney 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 $51,000 cash by issuing common stock 2. Paid $7,200 for the materials used to make its products, all of which were started and completed during the year: 3. Paid salaries of $3,500 to selling and adininistrative employees 4. Paid wages of $6,100 to production workers 5. Paid $3.600 for furniture used in selling and administrative offices. The furmiture was acquired on January 1 . It had a $1,000 estimated salvage value and a two-year useful life. 6. Paid $8,600 for manufocturing equipment. The equipment was acquired on January 1 . It had a $1,200 estimated salvage value and a two-year useful ife. 7. Sold inventory to customers for $26,200 that had cost $13,700 to make. Required Indicate how these events would affect the balance sheet and income statement by recording them in a horizontal financiat statements model as indicated here. The first event is recorded as an example. (Enter any decreoses to account balances with o minus sign. For changes on the Stotement of Cash Flows, indicate whether the item is an operating activity (OA), investing octivity (IA), financing octivity (FA).) Return to que (x) Answer is not complete