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Zachary Manufacturing Company experienced the following accounting events during its first year of operation. With the exception of the adjusting entries for depreciation, assume that

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Zachary 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 $58,000 cash by Issuing common stock. 2 Paid $7.400 for the materials used to make its products, all of which were started and completed during the year 3. Paid salaries of $4,000 to selling and administrative employees 4. Paid wages of $6.600 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 $1,800 estimated salvage value and a two year useful life 6. Paid $11,400 for manufacturing equipment. The equipment was acquired on January 1 It had a $1800 estimated salvage value and a three-year useful life. 7. Sold inventory to customers for $25700 that had cost $13.600 to make Required Indicate how these events would affect the balance sheet and income statement by recording them in a borontal 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).) 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 (1A), financing activity (FA).) Balance Sheet Event No. Ich Inventory HVO UV Mandi Equip Stockholde Equity Gaman Rar STOCK 58,000 + RAM Nel 1 58,000 + + 58,000 FA + . . 2 3 . 4 50 5b 6b Ta Total + Balance Sheet Event No. Stockholders' Equity Inconie Statement Assets Cash BV Manut, Inventory Equip 58,000 + Cash Flow BV Office Furn Ret Eat Rov Common stock 58 000+ 1 Exp. Neting + + 2 + 58.000 FA + + + + 4 + 5a 5b 6 66 7a 7 Total

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