3) 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:

Paid $61,450 cash for direct raw materials.

Transferred $51,210 of direct raw materials to work in process.

Paid production employees $81,940 cash.

Applied $54,290 of manufacturing overhead costs to work in process.

Completed work on products that cost $166,970.

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.

Paid $20,490 cash for selling and administrative expenses.

Actual overhead costs paid in cash amounted to $56,350.

Closed the Manufacturing Overhead account. The amount of over- or underapplied overhead was insignificant (immaterial).

Made a $5,120 cash distribution to the owners.

A) Prepare an income statement and a balance sheet. Fill out charts

ANYWHERE, INC.
Income Statement
For Year Ended December 31, 2017

ANYWHERE, INC.
Balance Sheet
December 31, 2017
Assets
Total assets
Stockholders' equity
Total stockholders' equity