I need extreme help with the values and figuring out where they belong on the sgatem 2Stuart Manufacturing Company experienced the following accounting events during its first year of operation. With the exception ofthe adjusting entries for depreciation, assume that all transactions are cash transactions and that financial statement data are preparedin accordance with GAAP.SeBookPrinterencesW2WSXbe1. Acquired $55,000 cash by issuing common stock.2. Paid $7,200 for the materials used to make its products, all of which were started and completed during the year.3. Paid salaries of $4,100 to selling and administrative employees.4. Paid wages of $6,800 to production workers.5. Paid $7,900 for furniture used in selling and administrative offices. The furniture was acquired on January 1. It had a $1,900estimated salvage value and a three-year useful life.and a three-year useful life.6. Paid $12,700 for manufacturing equipment. The equipment was acquired on January 1. It had a $1,300 estimated salvage value7. Sold inventory to customers for $26,800 that had cost $13,900 to make.RequiredIndicate how these events would affect the balance sheet and income statement by recording them in a horizontal financialstatements model as indicated here. The first event is recorded as an example. (Enter any decreases to account balances with a(IA), financing activity (FA).)minus sign. For changes on the Statement of Cash Flows, indicate whether the item is an operating activity (OA), investing activityEventNo.12345aCash55,000# 3ED++ Inventory +++C++4Assets$+++++RFBalance SheetBV Manuf.Equip.V%5++++++BV OfficeFurn.TG= Stockholders' EquityRet.Ear.=||=II1111P< Prev6Commonstock55,000 +BY++H+++2 of 6MacBook Pro&7UNRev.* 008Income StatementNext >JI1Exp.M==||===(9KNet Inc.OCash Flow55,000xLFAP

The income and expenses are recorded in the income statement. The assets, liabilities and…

Stuart 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 $7,200 for the materials used to make its products, all of which were started and completed during the year. 3. Paid salaries of $4,100 to selling and administrative employees. 4. Paid wages of $6,800 to production workers. 5. Paid $7,900 for furniture used in selling and administrative offices. The furniture was acquired on January 1. It had a $1,900 estimated salvage value and a three-year useful life. 6. Paid $12,700 for manufacturing equipment. The equipment was acquired on January 1. It had a $1,300 estimated salvage value and a three-year useful life. 7. Sold inventory to customers for $26,800 that had cost $13,900 to make. Required 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).) Event No. 1 2 3 4 5a Cash + Inventory + 55,000 + + Assets +++ + + + + + Balance Sheet BV Manuf. Equip. + + + + + + BV Office Furn. = Stockholders' Equity Ret. Ear. = = = = = Common stock Prou + 55,000+ + + + Rev. Income Statement - Exp. = = = = = = Net Inc. Cash Flow 55,000 FA

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 1PB: Consider the following situations and determine (1) which type of liability should be recognized...