Comprehensive Problem (Algo) LO 11-1, 11-2, 11-3, 11-4 Benson Modems, Inc. acquired a subsidiary named Anywhere, Inc. (Al). 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 $181,400 3,630 5,450 6,360 $117,020 79,820 $196,840 $196,840 The subsidiary completed the following transactions during Year 2. 1. Paid $54,430 cash for direct raw materials. 2. Transferred $45,360 of direct raw materials to work in process. 3. Paid production employees $72,580 cash. 4. Applied $48,090 of manufacturing overhead costs to work in process. 5. Completed work on products that cost $147,900. 6. Sold products that cost $129,750 for $165,140 cash. Record the recognition of revenue in a row labeled 6a and the cost of goods sold in a row labeled 6b. 7. Paid $18,150 cash for selling and administrative expenses. 8. Actual overhead costs paid in cash amounted to $49,910. 9. Closed the Manufacturing Overhead account. The amount of over- or underapplied overhead was insignificant (immaterial). 10. Made a $4,530 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.