Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

need all 4 parts answered , will leaves thumbs up Antioch Company makes eBook readers. The company had the following amounts at the beginning of

need all 4 parts answered , will leaves thumbs up
image text in transcribed
Antioch Company makes eBook readers. The company had the following amounts at the beginning of Year 2: Cash, $661,000; Raw Materials inventory. $60,000: Work in Process Inventory, $25,000: Finished Goods Inventory, $58,000: Common Stock. $595,000, and Retained Earnings. $209,000. 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 $29,000 of research and development costs. 2. Pald $64,000 for fav materials that will be used to make eBook readers. 3. Placed $99,000 of the raw materials cost into the process of manufacturing eBook readers. 4. Pald $69,000 for salaries of selling and administrative employees. 5. Paid $95,000 for wages of production workers. 6. Paid $173,000 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 $13,000 salvage value and a eight-year life. The amount of depreciation is computed as ((Cost - salvage) + useful life] Specifically. ($173,000 - $13,000) 8 = $20,000 8. Pald $180,000 to purchase manufacturing equipment 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, Year 2. It has a $28,000 salvage value and a eight-year life. The amount of depreciation is computed as [(Cost - salvage) + useful life). Specifically, ($180,000 - $28,000) - 8 = $19,000. 10. Paid $64,000 for rent and utility costs on the manufacturing facility 11. Pald $72,000 for inventory holding expenses for completed eBook readers (rental of warehouse space, solaries of warehouse personnel, and other general storage cost). 12. Completed and transferred eBook readers that had total cost of $259,000 from work in process inventory to finished goods. 13. Sold 890 eBook readers for $423,000. 14. It cost Antioch $178,000 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

10th edition

978-1260481952

Students also viewed these Accounting questions