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Antioch Company makes eBook readers. The company had the following out the beginning of Year 2 Cash 5680.000 Raw Materials inventory $60,000; Work in Process

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Antioch Company makes eBook readers. The company had the following out the beginning of Year 2 Cash 5680.000 Raw Materials inventory $60,000; Work in Process Inventory, $27000: Finished Goods inventory, 56100 Common Stock 5602.000 and Retained Earnings, $226,000 Antioch experienced the following accounting events during Year 2. Omer than the adjusting entries for depreciation, assume that all transactions are cash transactions 1. Pald $32,000 of research and development costs 2. Paid $62,000 for raw materials that will be used to make eBook readers 3. Placed $92000 of the raw materials cost into the process of manufacturing eBook readers 4. Pald $77,000 for salaries of selling and administrative employees. 5. Pald $105,000 for wages of production workers. 6. Paid $139,000 to purchase equipment used in selling and administrative offices 7 Recognized depreciation on the office equipment. The equipment was acquired on Januaryt Year 2 it has a $19.000 salvage value and a six-year life. The amount of depreciation is computed as Cost - Savage) e Specifically (5139.000 $19.000) 6 $20,000 8. Pald $112,000 to purchase manufacturing equipment 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January Year 2. It has a $24.000 salvage value and a eight-year life. The amount of depreciation is computed as (Cost-salvage used to specifically ($112.000 - $24,000) 8 $11,000, 10. Pald $51,000 for rent and utility costs on the manufacturing facility 11. Poid $79,000 for inventory holding expenses for completed eBook readers trental of warehouse space, stories of warehouse personnel, and other general storage cost), 12. Completed and transferred eBook readers that had total cost of $249,000 from work in process inventory to finished goods 13. Sold 850 eBook readers for $436,000. 14. It cost Antioch $153,000 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 hortzontal 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

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