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Antioch Company makes eBook readers. The company had the following amounts at the beginning of Year 2 Cash $661000, Raw Materials Inventory, $58,000, Work in

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Antioch Company makes eBook readers. The company had the following amounts at the beginning of Year 2 Cash $661000, Raw Materials Inventory, $58,000, Work in Process Inventory, $25,000 Finished Goods Inventory, $46.000. Common Stock $590,000 and Retained Earnings. $200,000. Antioch expertenced 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 $67,000 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 $66.000 for salaries of selling and administrative employees 5. Paid $99.000 for wages of production workers 6. Pald $92,000 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 $12.000 salvage value and a eight-year life. The amount of depreciation is computed as [Cost - salvage) - useful ite) Specifically, (592.000 - $12.000) = 8 - $10,000 8. Paid $153,000 to purchase manufacturing equipment 9. Recognized depreciation on the manufacturing equipment The equipment was acquired on January 1 Year 2. It has a $27000 salvage value and a seven-year life. The amount of depreciation is computed as (Cost - salvage) = userulife Specifically (5153,000 - $27,000) - 7 - $18,000 10. Pald $55,000 for rent and utility costs on the manufacturing facility 11. Pald $73,000 for Inventory holding expenses for completed eBook readers trental of warehouse space salaries of warehouse personnel, and other generat storage cost) 12. Completed and transferred eBook readers that had total cost of $247000 from work in process Inventory to finished goods 13. Sold 850 eBook readers for $433.000 14. It cost Antioch $170,000 to make the eBook readers sold in Event 13. Required: 0. Show how these events affect the balance sheet income statement and statement of cash flows by recording them in a bozontal financial statements model 6.1. Prepare a schedule of cost of goods manufactured and sold for the year C-2. Prepare a formal income statement for the year At NA War CW o All NA Am Good DR M 000.000 53.000 25.000 40,000+ 500.000 200 000 + . 10 11 12 11 .

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