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Adams Modems, Inc. acquired a subsidiary named Anywhere, Inc. (AI). AI manufactures a wireless modem that enables users to access the Internet through cell phones. The following trial balance was drawn from the accounts of the subsidiary:

Cash	$	204,800
Raw materials inventory		4,100
Work in process inventory		6,150
Finished goods inventory		7,180
Common stock					$	132,110
Retained earnings						90,120
Totals	$	222,230			$	222,230

The subsidiary completed the following transactions during 2017:

1. Paid $61,450 cash for direct raw materials.
2. Transferred $51,210 of direct raw materials to work in process.
3. Paid production employees $81,940 cash.
4. Applied $54,290 of manufacturing overhead costs to work in process.
5. Completed work on products that cost $166,970.
6. Sold products that cost $146,480 for $186,430 cash. Record the recognition of revenue in a row labeled 6a and the cost of goods sold in a row labeled 6b.
7. Paid $20,490 cash for selling and administrative expenses.
8. Actual overhead costs paid in cash amounted to $56,350.
9. Closed the Manufacturing Overhead account. The amount of over- or underapplied overhead was insignificant (immaterial).
10. Made a $5,120 cash distribution to the owners.

Required

1. For Anywhere, Inc., record the events in a horizontal statements model. The first event is shown as an example.

2. Prepare a schedule of cost of goods manufactured and sold.

3. Prepare an income statement and a balance sheet.

For Anywhere, Inc., record the events in a horizontal statements model. The first event is shown as an example. (Enter decreases to account balances with a minus sign.)

Balance Sheet Income Statement Assets = Equity Revenue Expense = Net Income Event No. Cash + Manufacturing Overhead + Raw Materials + Work in Process + Finished Goods = Common Stock + Retained Earnings Beg. Bal. $204,800 + + $4,100 + $6,150 + $7,180 = $132,110 + $90,120 = 1. + + + + = + = 2. + + + + = + = 3. + + + + = + = 4. + + + + = + = 5. + + + + = + = 6a. + + + + = + = 6b. + + + + = + = 7. + + + + = + = 8. + + + + = + = 9. + + + + = + = 10. + + + + = + = Total + + + + = + =

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