Required information The following information applies to the questions displaye

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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 $675,000; Raw Materials Inventory, $61,000; Work in Process Inventory, $23,000; Finished Goods Inventory. $48,000; Common Stock, $585,000, and Retained Earnings, $222,000. Antioch experienced the following accounting events during 2018. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions. 1. Paid $30,000 of research and development costs. 2. Paid $62,000 for raw materials that will be used to make eBook readers 3. Placed $90,000 of the raw materials cost into the process of manufacturing eBbok readers. 4. Paid $67,000 for salaries of selling and administrative employees 5. Paid $91,000 for wages of production workers. 6. Paid $93,000 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 $13,000 salvage value anda eight-year life. The amount of depreciation is computed as cost-salvage-useful life Specifically. ($93,000-$13,000)+8 $10,000 8. Paid $172,000 to purchase manufacturing equipment 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, 2018. It has a $28,000 salvage value and a eight-year life The amount of depreciation is computed as Cost-salvage useful life) Specifically, ($172,000- $28,000)+8 $18,000 10. Paid $53,000 for rent and utility costs on the manufacturing facility 11. Paid $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 $244,000 from work in process inventory to finished goods 13. Sold 840 eBook readers for $439,000 14. It cost Antioch $159,600 to make the eBook readers sold in Event 13

Explanation / Answer

Balance Sheet Event Assets Stockholders equity Income statement Statement of cash flows Cash + Rawmaterials + Work in progress inventory + Finished goods + Office furniture + Manufacturing equipment = Common stock + Retained earnings Revenue - Expenses = Net income 675000 61000 23000 48000 585000 222000 1 -30000 30000 -30000 -30000 Operating cash flow 2 -62000 62000 -62000 Operating cash flow 3 -90000 90000 4 -67000 67000 -67000 -67000 Operating cash flow 5 -91000 91000 -91000 Operating cash flow 6 -93000 93000 -93000 Investing cash flow 7 -10000 10000 -10000 8 -172000 172000 -172000 Investing cash flow 9 18000 -18000 10 -53000 53000 -53000 Operating cash flow 11 -79000 79000 -79000 -79000 Operating cash flow 12 -2400000 240000 13 439000 439000 439000 439000 Operating cash flow 14 -159600 159600 -159600

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