Comprehensive Problem (Algo) LO 11-1, 11-2, 11-3, 11-4 Adams Modems, Inc. acquired a subsidiary named Anywhere, Inc. (AI). Al 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 Raw materials inventory Work in process inventory Finished goods inventory Common stock Retained earnings Totals $284,800 4,100 6,150 7,180 $132, 110 90, 120 $222, 230 $222,230 1. Pald $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 a. For Anywhere, Inc., record the events in a financial statements model. The first event is shown as an example. b. Prepare a schedule of cost of goods manufactured and sold. c. Prepare an income statement and a balance sheet. For Anywhere, Inc., record the events in a financial statements model. The first event is shown as an example. (Enter decreases to account bal Income Statement Expense N Revenue Cash Manufacturing Overhead Balance Sheet Assets Raw Work in Finished Materials Process Goods $ 4,100+ $ 6,150+ $ 7.180 = Event No. Beg. Bal. 1. Equity Common Retained Stock Earnings $ 132,110 + $ 90,120 $ 204,800 + + + + 2. 3. +++++ III 5. 6a. 6b. 7 ULLIRIT Revenue Expense Net Income tained arnings 90,120 - II - 11 11 11 Il = = ANYWHERE, INC. Schedule of Cost of Goods Manufactured and Sold For Year Ended December, 31 Year 2 Beginning finished goods inventory $ 4,100 Raw materials available for use 4,100 Direct raw materials used 4,100 Total manufacturing costs 4,100 Total work in process inventory 4,100 Cost of goods manufactured 4,100 Total manufacturing costs 4,100 Total work in process inventory 4,100 es Cost of goods manufactured 4,100 Cost of goods available for sale 4,100 Cost of goods sold $ 4,100 ANYWHERE, INC. Income Statement For Year Ended December 31, Year 2 nces 0 $ 0 c Rea B Reac Bal Sheet Prepare a balance sheet. ANYWHERE, INC. Balance Sheet December 31, Year 2 Assets Total assets $ 0 Stockholders' equity