Problem 10-27A (Algo) Schedule of cost of goods manufactured and sold LO 10-3 Antioch Company makes eBook readers. The company had the following amounts at the beginning of Year 2: Cash, $672,000; Raw Materials Inventory $63,000, Work in Process Inventory, $25,000; Finished Goods Inventory, $59,000; Common Stock. $586,000; and Retained Earnings $233,000 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 $27,000 of research and development costs 2. Paid $65,000 for raw materials that will be used to make eBook readers. 3. Placed $90,000 of the raw materials cont into the process of manufacturing eBook readers 4. Paid $73,000 for salaries of selling and administrative employees 5. Paid $103.000 for wages of production workers 6. Pald $88,000 to purchase equipment used in Soling and administrative offices 7. Recognized depreciation on the office equipment. The equipment was acquired on January 1, Year 2. It has a $18,000 salvage value and a seven year life. The amount of depreciation is computed as [(Cost- salvage) useful life). Specifically,($88,000 - $18.000) + 7 - $10,000 B. Paid $125,000 to purchase manufacturing equipment 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1 Year 2. It has a $29,000 salvage value and a eight year life. The amount of depreciation is computed as (Cost - Salvage) + useful life). Specifically, ($125.000 - $29.000) 8 - $12,000, 10. Pald $51.000 for rent and utility costs on the manufacturing facility. 11. Paid $72,000 for inventory holding expenses for completed eBook readers trental of warehouse space, salaries of warehouse 12. Completed and transferred eBook readers that had total cost of $258,000 from work in process inventory to finished goods, 13. Sold 950 eBook readers for $431,000. 14. It cost Antioch $180,500 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. 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. RA CI show how these events affect the balance sheet. Income statement, and statement of cash flows by recording them in a horizontal Financial statements model. (Enter any the sement of Cathos, indicate whether the item is an operating activity (OA). Investing activity (A), or financing activity (FA). If an item is not affected, leave the ANTIOCH COMPANY Financial Statement Model Balunce Sheet Income Statement Stockholders Equity Wonin Process entry 25.000 V Once Furniture DV Manufacturing Equiment Common Stock Retained Revenue Expenda Not Income Goods 50.000 672.000 63.000 536.000 239,000 + 2 + ANTIOCH DORPANY Show Statement of Cash Film IV OM Como Retin 25.000 000 5.000 233.000 . + 25 000 50.000 000 2:33.000 0 0 Megc1> RA RGCI Reg 2 Req 4 Dos Prepare a schedule of cost of goods manufactured and sold for the year. (Amounts to be deducted should be indicated with a ANTOCH COMINY do Castelo de Marwanto Deginning was inventory 0 Raw materiale viable Ending materials inventory Rowed 0 0 Ovohet Total mandating costs Beginning winess ventory Total work in process invertory Ending work in process inventory Cost of goods manufactured Beginning finished goods merry Good Ending Sched goods my Cost of good 0 O 5 Rega Reg 2 complete 4 points ReqA Reg CI Reg C2 Req C3 eBook Prepare a formal income statement for the year. Print ANTIOCH COMPANY Income Statement For the Year Ended December 31, Year 2 References points Prepare a balance sheet for the year. ANTIOCH COMPANY Balance Sheet As of December 31, Year 2 eBook Assets Print References Total assets Stockholders' Equity $ 0 Total stockholders' equity 0