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 551000 cash by issuing common stock 2. Pald 97.600 for the materials used to make its products, all of which were started and completed during the yeat. 3. Paid salaries of $4.300 to selling and administrative employees 4. Paid wages of $6700 to production workers 5. Pald $5.500 for furniture used in selling and administrative offices. The furniture was acquired on January 4, it had a $1.200 6 Paid $7,500 for manufacturing equipment. The equipment was acquired on January 1. It had a $1.500 estimated salvage value and a two-year useful life 7 Sold Inventory to customers for $25,500 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 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).) Inconstant Event No Balance sheet Anas Invertory - DV Menu nyomce Fun Cash Flow - Docsity Common Het EM 51.000 Net 1 51.000 + $1.000 TA 2 3 + . . Income Statement Event Cash Flow NO Balance Sheet Assets BV Manut Cash BV Office + Inventory Equip Furn. 51,000+ Stockholders' Equity Common Ret stock Ear. 51,000 Rev. Exp. Not Inc 1 + 51.000 FA + - + 2 3 + 4 + 50 56 + Da ib 70 . 76 Total 51.000 0 0- 0 51,000+ 51.000