Problem 10-27A (Algo) Schedule of cost of goods Antioch Company makes eBook readers. The company had the following amounts at the beginning of Year 2: Cash, $677,000; Raw Materials Inventory, $63,000; Work in Process Inventory. $19,000; Finished Goods Inventory, $62,000; Common Stock, $592,000; and Retained Earnings, $229,000. Antioch experienced the following accounting events during Year 2. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions ces 1. Paid $26,000 of research and development costs. 2. Pald $63,000 for raw materials that will be used to make eBook readers. 3. Placed $85,000 of the raw materials cost into the process of manufacturing eBook readers 4. Paid $78,000 for salaries of selling and administrative employees 5. Paid $105,000 for wages of production workers. 6. Paid $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 life). Specifically, ($92,000 - $12,000) + 8 = $10,000 8. Pald $193,000 to purchase manufacturing equipment 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1 Year 2. It has a $22,000 salvage value and a nine-year life. The amount of depreciation is computed as [(Cost - salvage) + useful life). Specifically, ($193,000 - $22,000) + 9 = $19,000. 10. Paid $48,000 for rent and Utility costs on the manufacturing facility 11. Pald $79,000 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 $249,000 from work in process inventory to finished goods 13. Sold 900 eBook readers for $425,000 14. It cost Antioch $171,000 to make the eBook readers sold in Event 13. Required: Salvage value and a nine-year life. The amount of depreciation is computed as [(Cost - salvage) + useful life). Specifically, ($193,000 - $22,000) + 9 = $19,000 10. Paid $48,000 for rent and utility costs on the manufacturing facility. 11. Pald $79,000 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 $249,000 from work in process inventory to finished goods. 13. Sold 900 eBook readers for $425,000. 14. It cost Antioch $171,000 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. Complete this question by entering your answer in the tabs below. Reg A ReqC1 Reg C2 Reg C3 Show how these events affect the balance sheet, income statement, and statement of cash flows by recording them in a horizontal financial stat the Statement of Cash Flows, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). If an item ANTIOCH COMPANY Financial Statements Model Balance Sheet Income Statement Stockholders' Equity Assets Event Na Raw Materials Common Stock Net Inco Finished Goods BV Office Furniture Retained Earnings Revenue Expense - Cash BV Manufacturing Equipment Work in Process Inventory 19,000 229.000 63.000 + 62.000 677,000 + 592,000+ . 1 2 + 3 4 5 6 7 8. . 9 10 11 12 13 14 Total Financial Statements Model Balance Sheet Income Statement Stockholders' Equity Statement of Cash Flow ed BV Office Furniture BV Manufacturing Equipment Net Income Retained Earnings Revenue - Expense Common Stock 592,000+ 229,000 2,000+ . Req A Reg C1 Req C2 Reg C3 Prepare a formal income statement for the year. ANTIOCH COMPANY Income Statement For the Year Ended December 31, Year 2 Req A Req C1 Reg C2 Reg C3 Prepare a balance sheet for the year. ANTIOCH COMPANY Balance Sheet As of December 31, Year 2 Assets Total assets Stockholders' Equity Total stockholders' equity
