Comprehensive Problem (Algo) LO 11-1, 11-2, 11-3, 11-4 Campbell 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 $187,000 3,740 5,620 6,560 $120,630 82,290 $202,920 $202,920 The subsidiary completed the following transactions during Year 2. 1. Paid $56,110 cash for direct raw materials. 2. Transferred $46,760 of direct raw materials to work in process. 3. Paid production employees $74,820 cash. 4. Applied $49,570 of manufacturing overhead costs to work in process. 5. Completed work on products that cost $152,450. 6. Sold products that cost $133,740 for $170,220 cash. Record the recognition of revenue in a row labeled 6a and the cost of goods sold in a row labeled 6b. 7. Paid $18,710 cash for selling and administrative expenses. 8. Actual overhead costs paid in cash amounted to $51,450. 9. Closed the Manufacturing Overhead account. The amount of over- or underapplied overhead was Insignificant (Immaterial). 10. Made a $4,670 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. Complete this question by entering your answers in the tabs below. Req A Req B Req C Inc Stmt Req C Bal Sheet For Anywhere, Inc., record the events in a financial statements model. The first event is shown as an example. (Enter decreases to account balances with a minus sign.) Balance Sheet Income Statement Equity Revenue Expense = Net Income Work in Process Finished Goods Common Stock Retained Earnings $ 5,620 $ 6,560 $120,630 + $ 82,290 Event Cash No. Assets Manufacturing Overhead Beg. Bal $ 187,000+ + Raw Materials $ 3,740+ 1. + + + 2. + + + 3. + 4. 5. 6a. 6b. 7. 8. 9. +1 = + = = 10. Total $ 187,000+ $ 0 $ 3,740 $ 5,620 + $ 6,560 = + $ 120,630+ $ 82,290 < Req A S Req B > = |= |= = $ 0 = S 0 Complete this question by entering your answers in the tabs below. Req A Req B Req C Inc Stmt Req C Bal Sheet Prepare a schedule of cost of goods manufactured and sold. ANYWHERE, INC. Schedule of Cost of Goods Manufactured and Sold For Year Ended December, 31 Year 2 Beginning raw materials inventory Raw materials available for use Direct raw materials used Total manufacturing costs Total work in process inventory Cost of goods manufactured Cost of goods available for sale Cost of goods sold S < Req A 0 0 0 0 0 0 Req C Inc Stmt > Complete this question by entering your answers in the tabs below. Req A Req B Req C Inc Stmt Req C Bal Sheet Prepare an income statement. ANYWHERE, INC. Income Statement For Year Ended December 31, Year 2 Sales revenue Cost of goods sold Gross margin Selling and administrative expenses Net income 0 $ 0 < Req B Req C Bal Sheet > Complete this question by entering your answers in the tabs below. Req A Req B Req C Inc Stmt Req C Bal Sheet Prepare a balance sheet. ANYWHERE, INC. Assets Cash Balance Sheet December 31, Year 2 Raw materials inventory Work in process inventory Finished goods inventory Total assets Stockholders' equity Common stock Retained earnings Total stockholders' equity $ 0 $ < Req C Inc Stmt Req C Bal Sheet