Walton 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 $7,900 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 $7,000 for furniture used in selling and administrative offices. The furniture was acquired on January 1. It had a $1,600 estimated salvage value and a three-year useful life.
6. Paid $12,000 for manufacturing equipment. The equipment was acquired on January 1. It had a $1,500 estimated salvage value and a three-year useful life.
7. Sold inventory to customers for $25,400 that had cost $13,300 to make.

Required 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 decreases to account balances with a minus sign.)

Income Statement Event Na - Equity Common stock 55,000 + Ret. Ear. Rev Exp. Net Inc. 1 2 3 4 ULUI (3,800) 3.800 Balance Sheet Assets Cash Manut Office Inventory Equip Furn 55.000 (7.900) 7.900 (3.800) (5,800) 6.800 (7.000) 7,000 . (1.800) (12.000) 12.000 + (3.500) 25,4001 - (13,3001 - 42.900 - 1.400 + 8.500 5,200 13.8001 + + 5a 50 (1.800) 1,800 (1.800] Ba + - 60 7a 25,4001 - 25,400 .... ... ++++ Tb # 25.400 (13,300) 6.500 13,300 - (13.300) 6,500 Total 55.000 + 25 400 18,900