(Recording product versus selling, general, and administrative costs in a finiacial statements model)

Naoki Manufacturing experienced the following events during its first accounting period.

Use the following horizontal financial statements model to show how each event affects the balance sheet and income statement. (Note: Show accumulated depreciation as a decrease in the book value of the appropriate asset account.)

1. Recognized depreciation on manufacturing equipment. 2. Recognized depreciation on office furniture 3. Recognized revenue from cash sale of products. 4. Recognized cost of goods sold from sale referenced in Event 3 5. Acquired cash by issuing common stock. 6. Paid cash to purchase raw materials that were used to make products. 7. Paid wages to production workers 8. Paid salaries to administrative staff