Antioch Company makes eBook readers The company had the following amounts at the beginning of 2018 Cash, $679,000 Raw Materials Inventory, $69,000 Work in Process Inventory, $22,000 Finished Goods Inventory, $43,000 Common Stock, $587,000 and Retained Earnings, $226,000 Antioch experienced the following accounting events during 2018 Other than the adjusting entries for depreciation, assume that all transactions are cash transactions Paid $26,000 of research and development costs Paid $51,000 for raw materials that will be used to make eBook readers Placed $86,000 of the raw materials cost into the process of manufacturing eBook readers Paid $69,000 for salaries of selling and administrative employees Paid $100,000 for wages of production workers Paid $176,000 to purchase equipment used in selling and administrative offices Recognized depreciation on the office equipment The equipment was acquired on January 1, 2018 It has a $16,000 salvage value and a eight year life The amount of depreciation is computed as (Cost salvage) useful life Specifically, ($176,000 $16,000) 8 $20,000 Paid $170,000 to purchase manufacturing equipment Recognized depreciation on the manufacturing equipment The equipment was acquired on January 1, 2018 It has a $30,000 salvage value and a seven year life The amount of depreciation is computed as (Cost salvage) useful life Specifically, ($170,000 $30,000) 7 $20,000 Paid $64,000 for rent and utility costs on the manufacturing facility Paid $73,000 for inventory holding expenses for completed eBook readers (rental of warehouse space, salaries of warehouse personnel, and other general storage cost) Completed and transferred eBook readers that had total cost of $245,000 from work in process inventory to finished goods Sold 960 eBook readers for $426,000 It cost Antioch $144,000 to make the eBook readers sold in Event 13 ANTIOCH COMPANY Financial Statements Model Stockholders' Equity Income Statement Event No Statement of Cash Flow Cash Raw Materials Assets Work in Finished Process Goods Inventory 22,000 43,000 Office Furniture Manufacturing Equipment Common Stock Retained Earnings Revenue Expense Net Income 679,000 69,000 226,000 587,000 1 2 3 4 5 1 8 9 10 11 12 13 14 Total

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 12, 2024

Antioch Company makes eBook readers. The company had the following amounts at the beginning of 2018: Cash, $679,000; Raw Materials Inventory, $69,000; Work in Process

Antioch Company makes eBook readers. The company had the following amounts at the beginning of 2018: Cash, $679,000; Raw Materials Inventory, $69,000; Work in Process Inventory, $22,000; Finished Goods Inventory, $43,000; Common Stock, $587,000; and Retained Earnings, $226,000. Antioch experienced the following accounting events during 2018. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions.

Paid $26,000 of research and development costs.
Paid $51,000 for raw materials that will be used to make eBook readers.
Placed $86,000 of the raw materials cost into the process of manufacturing eBook readers.
Paid $69,000 for salaries of selling and administrative employees.
Paid $100,000 for wages of production workers.
Paid $176,000 to purchase equipment used in selling and administrative offices.
Recognized depreciation on the office equipment. The equipment was acquired on January 1, 2018. It has a $16,000 salvage value and a eight-year life. The amount of depreciation is computed as [(Cost salvage) useful life]. Specifically, ($176,000 $16,000) 8 = $20,000.
Paid $170,000 to purchase manufacturing equipment.
Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, 2018. It has a $30,000 salvage value and a seven-year life. The amount of depreciation is computed as [(Cost salvage) useful life]. Specifically, ($170,000 $30,000) 7 = $20,000.
Paid $64,000 for rent and utility costs on the manufacturing facility.
Paid $73,000 for inventory holding expenses for completed eBook readers (rental of warehouse space, salaries of warehouse personnel, and other general storage cost).
Completed and transferred eBook readers that had total cost of $245,000 from work in process inventory to finished goods.
Sold 960 eBook readers for $426,000.
It cost Antioch $144,000 to make the eBook readers sold in Event 13.

image text in transcribed

ANTIOCH COMPANY Financial Statements Model Stockholders' Equity Income Statement Event No. Statement of Cash Flow Cash Raw Materials Assets Work in Finished Process Goods Inventory 22,000 + 43,000 + Office Furniture Manufacturing - Equipment Common Stock Retained Earnings Revenue - Expense = Net Income 679,000 + 69,000 + + + 226,000 587,000| + + 1. + + + + + 2. + + + + + + 3. + + + + + + 4. + + + + + + 5. + + + + + + + + + + + + 1 + . + + + + + 8 + + + + + + 9. + + + + + + 10. + + + + + + 11. + + + + + + 12. + + + + + + 13. + + + + + + 14. + + + + + + Total + + + + + +