Magnificent 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	$	200,000
Raw materials inventory		4,000
Work in process inventory		6,000
Finished goods inventory		7,000
Common stock					$	129,000
Retained earnings						88,000
Totals	$	217,000			$	217,000

The subsidiary completed the following transactions during 2017:

1. Paid $60,000 cash for direct raw materials.
2. Transferred $50,000 of direct raw materials to work in process.
3. Paid production employees $80,000 cash.
4. Applied $53,000 of manufacturing overhead costs to work in process.
5. Completed work on products that cost $163,000.
6. Sold products that cost $143,000 for $182,000 cash. Record the recognition of revenue in a row labeled 6a and the cost of goods sold in a row labeled 6b.
7. Paid $20,000 cash for selling and administrative expenses.
8. Actual overhead costs paid in cash amounted to $55,000.
9. Closed the Manufacturing Overhead account. The amount of over- or underapplied overhead was insignificant (immaterial).
10. Made a $5,000 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.