Antioch Company makes eBook readers. The company had the following amounts at the beginning of Year 2: Cash $668,000; Raw Materials Inventory, $59,000: Work in Process Inventory $19,000; Finished Goods Inventory, $56,000; Common Stock, $598,000, and Retained Earnings. $204,000. Antioch experienced the following accounting events during Year 2. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions 1. Paid $28,000 of research and development costs 2. Paid $60,000 for raw materials that will be used to make eBook readers. 3. Placed $97,000 of the raw materials cost into the process of manufacturing eBook readers. 4. Pald $61,000 for salaries of selling and administrative employees. 5. Paid $95,000 for wages of production workers. 6. Paid $100,000 to purchase equipment used in selling and administrative offices 7. Recognized depreciation on the office equipment. The equipment was acquired on January 1. Year 2. It has a $20,000 salvage value and a elght-year life. The amount of depreciation is computed as ((Cost-salvage) - useful life). Specifically. ($100,000 - $20,000) - 8 = $10,000. 8. Paid $152,000 to purchase manufacturing equipment. 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1 Year 2. It has a $26.000 salvage value and a seven-year life. The amount of depreciation is computed as [(Cost-salvage) + useful life). Specifically, ($152,000 - $26,000) + 7$18,000, 10. Paid $63,000 for rent and utility costs on the manufacturing facility 11. Pald $73.000 for inventory holding expenses for completed eBook readers (rental of warehouse space, salaries of warehouse 12. Completed and transferred eBook readers that had total cost of $259.000 from work in process inventory to finished goods. 13. Sold 990 eBook readers for $429,000. 14. It cost Antioch $198,000 to make the eBook readers sold in Event 13. Required: a. Show how these events affect the balance sheet income statement, and statement of cash flows by recording them in a horizontal financial statements model. C-1. Prepare a schedule of cost of goods manufactured and sold for the year c-2. Prepare a formal income statement for the year. c-3. Prepare a balance sheet for the year. ANTIOCH COMPANY Schedule of Cost of Goods Manufactured and Sold For the Year Ended December 31, Year 2 Beginning raw materials Inventory $ 59,000 Purchases 60,000 Raw materials available 119,000 Ending raw materials inventory 0 x Raw materials used 119,000 Labor 0 x Overhead 0 X Total manufacturing costs 119,000 Beginning work in process 19,000 inventory Total work in process inventory 138,000 Ending work in process inventory 0 X Cost of goods manufactured 138,000 Beginning finished goods inventory 56,000 Goods available 194,000 Ending finished goods inventory 117,000 X Cost of goods sold $ 311,000 ANTIOCH COMPANY Income Statement For the Year Ended December 31, Year 2 Sales revenue Cost of goods sold Gross margin Selling and administrative expense Net income ANTIOCH COMPANY Balance Sheet As of December 31, Year 2 Assets Cash Raw materials inventory Work in process inventory Finished goods inventory Office equipment Manufacturing equipment Total assets $ 0 Stockholders' Equity Total stockholders' equity $ 0