Problem 1-21A (Algo) Effect of product versus period costs on financial statements LO 1-3 Rundie 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 $55,000 cash by issuing common stock 2. Paid $7,500 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 $6,800 to production workers. 5. Paid $5.200 for furniture used in selling and administrative offices. The furniture was acquired on January 1 It had a $1,000 estimated salvage value and a three-year useful life. 6. Paid $8,100 for manufacturing equipment. The equipment was acquired on January 1. It had a $1100 estimated salvage valu two year useful life. Required How these events would affect the balance sheet and income statement by recording them in a horizontal financial statements model os indicated here. The first event is recorded as an example. (Enter decreases to account balances with a minus sign.) Book Balance Sheet Income Statement Event No. Assets forences Cash Cash + Inventory Manul Inventory Office Fum Equity Common stock 55.000 Equip Ret Far Rex. - Exp. - Net Inc. 55.000