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Antioch Company makes eBook readers. The company had the following amounts at the beginning of 2018: Cash, $679,000, Raw Materials Inventory, $53,000, 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, $53,000, Work in Process Inventory, $32.000, Finished Goods Inventory. $53,000, Common Stock, $597000, and Retained Eanings, $220.000 Antioch experienced the following accounting events during 2018. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions. 1 Paid $25,000 of research and development costs 2 Paid $49,000 for raw materals that will be used to make eBook readers 3. Placed $89,000 of the raw materials cost into the process of manufacturing eBook readers 4. Paid $64,000 for salanes of selling and administrative employees 5. Paid $94,000 for wages of production workers 6. Paid $95,000 to purchase equipment used in selling and administrative offices 7. Recognized depreciation on the office equipment The equipment was acquired on January 1, 2018. It has a $15,000 salvage value and a eight-year life. The amount of depreciation is computed as ((Cost-salvage) useful life Specifically, ($95,000-$15,000) 8-$10,000 8. Paid $125,000 to purchase manufacturing equipment 9 Recognized depreciation on the manufacturing equipment The equipment was acquired on January 1, 2018 It has a $26,000 salvage value and a nine-year Ife. The amount of depreciation is computed as [ICost-saivage)+ usetful life Specifically. ($125,000-$26,000)- 9-$11,000. 10 Paid $60,000 for rent and utility costs on the manufacturing facility 1. Paid $75,000 for inventory holding expenses for completed eBook readers (rental of warehouse space, salaries of warehouse personnel, and other general storage cost) 12 Completed and transferred eBook readers that had total cost of $251 000 from work in process inventory to finished goods 13 Sold 930 eBook readers for $421,000 14 It cost Antioch $186 000 to make the eBook readers sold in Event 13. Required information a. Show how these events affect the balance sheet income staterment, and statement of cash flows by recording them in a horizontal financial statements model. (Enter any decreases to nccount belances and cash outflows with a minus sign. In the Cash Flow column, Indicate whether the Item s an opereting activity (OA), Investing activity (IA), or firiancing activity (FA). the hem is nott effected, leave the cell blank.) Part 1 of 2 5 points ANTIOCH COMPANY Financial Statemonts Model Assets Stockholders Equity Event No. income tatement Work in Process Inventory oBook Raw Materials Finished Goods Manufacturing Equipment Cash Office Fumiture Retained Eamings Common Stock Revense Expense Net Incom 670,000+ 53.000 + 32,000+ 53.000 + 597,000 220,000 Print 1. 2. + + + References 5. 6. 7 9. + 10. 11 12. 13. 14. 0 0 597,000 220.000 01+ 53,000+ 32,000 + 53,000 Total 679.000 co Next of 3
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