Question

Required information [The following information applies to the questions displayed below.) Antioch Company makes eBook readers. The company had the following amounts at the beginning of 2018: Cash, $660,000; Raw Materials Inventory, $56,000; Work in Process Inventory, $32,000; Finished Goods Inventory, $60,000; Common Stock, $585,000; and Retained Earnings, $223,000. Antioch experienced the following accounting events during 2018. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions. 1. Paid $28,000 of research and development costs. 2. Paid $49,000 for raw materials that will be used to make eBook readers. 3. Placed $95,000 of the raw materials cost into the process of manufacturing eBook readers. 4. Paid $76,000 for salaries of selling and administrative employees. 5. Paid $104,000 for wages of production workers. 6. Paid $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, 2018. It has a $18,000 salvage value and a seven-year life. The amount of depreciation is computed as [(Cost - salvage) = useful life]. Specifically, ($158,000 - $18,000) - 7 = $20,000. 8. Paid $92,000 to purchase manufacturing equipment. 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, 2018. It has a $22,000 salvage value and a seven-year life. The amount of depreciation is computed as [(Cost - salvage) - useful life]. Specifically, ($92,000 - $22,000) = 7 = $10,000. 10. Paid $61,000 for rent and utility costs on the manufacturing facility. 11. Paid $76,000 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 $259,000 from work in process inventory to finished goods. 13. Sold 870 eBook readers for $421,000. 14. It cost Antioch $139,200 to make the eBook readers sold in Event 13.

Answer 1

+ + + + + + + + ΝΑ' + + + + + + + ANTIOCH COMPANY Financial Statements Model Assets = Stockholders' Equity Income Statement Work in Process Manufacturing Statement of Event No. Cash + Raw Materials + Inventory + Finished Goods + Office Furniture + Equipment = Common Stock + Retained Earnings Revenue - Expense = Net Income Cash Flow 660,000+ 56,000 + 32,000 + 60,000+ 585,000 + 223,000 -28000 + -28000 28000/= -28000 28000 OA -49000 + 49000+ - 49000 OA -95000 + 95000 + -76000 + -76000 -76000 76000 OA -104000 + 104000 -104000 OA -158000 + 158000 -158000IA -20000 -20000 -20000 NA -92000 + 92000 -92000 IA 10000+ -10000 -61000 + 61000 -61000 OA -76000 + -76000 -76000 76000 OA -259000 259000 + 13 421000+ 421000 421000 - 421000 421000 OA -139200 + -139200 139200 = -139200 Total 437,000 + 10,000 + 43,000 + 179,800 + 138,000 + 82,000 = 585,000 + 304,800 421,000 - 339,200 = | 81,800 -223,000 NC + + + + + + + + + + + 20000 + + + + + BB00V + + + + NA + + + + + + + + NA + + + + + + INA + + + Sheet563 Sheet564 Sheet565 Sheet566 Sheet567 Sheet568 Sheet569 Sheet570 Sheet571 ] Jl ENG 22:26 Il UK 30/10/2019