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Perez Modems, Inc. acquired a subsidiary named Anywhere, Inc. (AI). Al manufactures a wireless modem that enables users to access the Internet through cell phones.

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Perez 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 $209,500 4,180 6,290 7,330 $135, 130 92,170 $227,300 $ 227,300 The subsidiary completed the following transactions during Year 2 1. Paid $62.850 cash for direct raw materials. 2. Transferred $52,390 of direct raw materials to work in process 3. Paid production employees $83,830 cash. 4. Applied $55,520 of manufacturing overhead costs to work in process 5. Completed work on products that cost $170.740. 6. Sold products that cost $149,790 for $190,660 cash. Record the recognition of revenue in a row labeled ba and the cost of goods sold in a row labeled 6b. 7. Paid $20.950 cash for selling and administrative expenses 8. Actual overhead costs paid in cash amounted to $57,590. 9. Closed the Manufacturing Overhead account. The amount of over- or underapplied overhead was insignificant immaterial). 10. Made a $5.220 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 sola. c. Prepare an income statement and a balance sheet. Income Statement Revenue ExpenseNet Income Event Manufacturing Overhead Balance Sheet Assets Raw Work in Materials Process + $ 4,180 + $ 6,290 + + T. + . Finished Goods 5 7,330 = Equity Common Retained Stock Earnings 5 135,130 + $ 92,170 Beg Bal. $ 209,500+ + Total 7.330 - S 135,1305 92.170 ANYWHERE, INC. Schedule of Cost of Goods Manufactured and Sold For Year Ended December, 31 Year 2 Raw materials available for use Direct raw materials used Total manufacturing costs Total work in process inventory Cost of goods manufactured 0 Cost of goods available for sale Cost of goods sold $ 0 Prepare an income statement. ANYWHERE, INC. Income Statement For Year Ended December 31, Year 2 $ Prepare a balance sheet. ANYWHERE, INC. Balance Sheet December 31, Year 2 Assets $ 0 Total assets Stockholders' equity Total stockholders' equity

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