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. $674,000: Raw Materials Inventory, $62,000; Work in Process Inventory, $22,000 Finished Goods Inventory, $51,000; Common Stock. $590,000; and Retained Earnings. $219,000. 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 $23,000 of research and development costs. 2. Pald $51000 for raw materials that will be used to make eBook readers. 3. Ploced $101,000 of the raw materials cost into the process of manufacturing eBook readers. 4. Paid $67,000 for salaries of selling and administrative employees. 5. Paid $103,000 for wages of production workers. 6. Poid $158,000 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 $18,000 salvage value and a seven-year life. The amount of depreciation is computed as f(Cost - salvage) + useful life). Specifically. ($158,000 - $18,000) 7 $20,000 8. Pald $164,000 to purchase manufacturing equipment 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, Year 2. It has a $24,000 salvage value and a seven-year life. The amount of depreciation is computed as (Cost - salvage) * useful life). Specifically ($164,000 - $24,000)+7-$20,000 10. Paid $51000 for rent and utility costs on the manufacturing facility 11. Poid $78,000 for inventory holding expenses for completed eBook readers (rental of warehouse space, salaries of warehouse 12. Completed and transferred eBook readers that had total cost of $243,000 from work in process inventory to finished goods. 13. Sold 930 eBook readers for $439,000 14. It cost Antioch $186,000 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