Problem 1027A (Algo) Schedule of cost of goods manufactured and sold LO 103 Antioch Company makes ebook readers. The company had the following amounts at the beginning of Year 2. Cash, $674,000 : Raw Materials Inventory, \$52.000; Work in Process Inventory, \$25,000; Finished Goods Inventory, $55,000 : Common Stock, \$602,000; and Retained Earnings, $204,000. 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 $26,000 of research and development costs. 2. Paid $53,000 for raw materials that will be used to make eBook readers. 3. Placed $86,000 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 $72,000 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 six-yeat life. The amount of depreciation is computed as fiCost - salvage) - useful life). Specifically, (\$72,000$12,00016=$10,000 8. Paid $162.000 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 o seven-year life. The amount of depreciation is computed as licost-salvage) - useful lifel Specifically. ($162.000$29.000)+7=$19.000) 10 Paid $62.000 for rent and utality costs on the manufacturing facility 11. Paid $72,000 for inventary holding expenses for completed eBook readers (rental of warehouse space, safaries of warehouse personnel, and other general storage coni) 12. Completed and transferred eBook readers that had total cost of $245,000 from work in process inventory to fimished ooods. 13. Sold 830 ellook readers for $425,000. 14 it cost Antioch $166.000 to make the eBook readers soid 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. Show how these events affect the balance sheet, income statement, and statenent of cash flows by recording them in a horizontal financlai statements model. the Statement of Cash Flows, indicate whether the litem is an operating activity (OA), inyeuting odivity (IA), of finanding activity (FA), If an itern is not affected, Prepare a schedule of cost of goods manufactured and sold for the year. (Amounts to be deducted should be indica minus sign.) Complete this question by entering your answer in the tabs below. Prepare a formal income statement for the year. Complete this question by entering your answer in the tabs below. Prepare a balance sheet for the year
