Solomon 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:

The subsidiary completed the following transactions during 2017:

1) Paid $59,500 cash for direct raw materials.

2) Transferred $49,590 of direct raw materials to work in process.

3) Paid production employees $79,350 cash.

4) Applied $52,550 of manufacturing overhead costs to work in process.

5) Completed work on products that cost $161,610.

6) Sold products that cost $141,780 for $180,460 cash. Record the recognition of revenue in a row labeled 6a and the cost of goods sold in a row labeled 6b.

7) Paid $19,830 cash for selling and administrative expenses.

8) Actual overhead costs paid in cash amounted to $54,510.

9) Closed the Manufacturing Overhead account. The amount of over- or underapplied overhead was insignificant (immaterial).

10) Made a $4,930 cash distribution to the owners.

Required

a) For Anywhere, Inc., record the events in a horizontal 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.

Cash Raw materials inventory Work in process inventory Finished goods inventory Common stock Retained earnings $198,300 3,960 5,960 6,950 $127,920 87,250 $215,170 $215,170 Totals For Anywhere, Inc., record the events in a horizontal statements model. The first event is shown as an example. (Enter decreases to account balances with a minus sign.) Balance Sheet Income Statement Assets Equity RevenueExpenseNet Income Work in Process Finished Goods Retained Earnings Event 9Raw Common Cash Manufacturing Stock 127,920$ 87,250 0. Overhead Materials Beg. B 198,300+ +$ 3,960S 5,960$6,950 2. 6a 6b 10 Total ANYWHERE, INC. Schedule of Cost of Goods Manufactured and Sold For Year Ended December, 31 2017 chases eginning raw materials inventory Raw materials available for use nding raw materials inventory Direct raw materials used Direct labor anufacturing overhead Total manufacturing costs Beginning work in process in Total work in process inventory ventory nding work in process inventory Cost of goods manufactured eginning finished goods inventory Cost of goods available for sale nding finished goods inventory Cost of goods sold Prepare an income statement. ANYWHERE, INC Income Statement For Year Ended December 31, 2017 Prepare a balance sheet. ANYWHERE, INC Balance Sheet December 31, 2017 Assets Total assets Stockholders' equity Total stockholders' equity