Rundle 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 $7,900 for the materials used to make its products, all of which were started and completed during the year.
3. Paid salaries of $3,900 to selling and administrative employees.
4. Paid wages of $6,300 to production workers.
5. Paid $7,200 for furniture used in selling and administrative offices. The furniture was acquired on January 1. It had a $1,200 estimated salvage value and a three-year useful life.
6. Paid $8,300 for manufacturing equipment. The equipment was acquired on January 1. It had a $1,900 estimated salvage value and a two-year useful life.
7. Sold inventory to customers for $26,400 that had cost $13,200 to make.

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).) Balance Sheet Income Statement Event No. Cash Flow Assets Cash BV Manuf. + Inventory + Equip. 51,000 + BV Office Furn. Stockholders' Equity Common Ret. + stock Ear. 51,000 + Rev. Exp. Net Inc. 1 + + Il = 51,000 FA 2 + + + 3 + + = 4 + + 5a + + 5b + + 6a + + + 6b 7a 7b + = + + + = Total 51,000 + 0 + 0 0 Il 51,000 + 0 0 0 51,000