Gibson 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 Totala $182,300 3,640 5, 470 6.330 $117.580 80,210 $197,790 $197,790 The subsidiary completed the following transactions during Year 2. 1. Paid $54,690 cash for direct raw materials. 2. Transferred $45,580 of direct raw materials to work in process 3. Paid production employees $72,930 cash. 4. Applied $48,310 of manufacturing overhead costs to work in process, 5. Completed work on products that cost $148,570. 6. Sold products that cost $130,340 for $165,900 cash. Record the recognition of revenue in a row labeled 6a and the cost of goods sold in a row labeled 6b. 7. Paid $18,230 cash for selling and administrative expenses 8. Actual overhead costs paid in cash amounted to $50,120. 9. Closed the Manufacturing Overhead account. The amount of over or underapplied overhead was insignificant immaterial). 10. Made a $4,540 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. RGA RB St Reg Ree Inc Rega 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 nussi) TO Balance Sheet Assets Raw Work in " Materials Income Statement Revenue - Expense - Net Income Finished Equity Common Bed Manufacturing Overhead $123001 . $ 3.500 $ 5.470.563 117 50 0 210 - 5.470 S6,100 - 117 580 S80 210 S 0 - S Reg 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 Purchases Raw materials available for use Direct raw materials used Manufacturing overhead Direct labor Total manufacturing costs Total work in process inventory Cost of goods manufactured Cost of goods available for sale Cost of goods sold Reg A ReqB Reg C Inc Stmt Req C Bal Sheet es Prepare an income statement. ANYWHERE, INC. Income Statement For Year Ended December 31, Year 2 Req A Reg B Req C Inc Stmt Reg C Bal Sheet Prepare a balance sheet. ANYWHERE, INC. Balance Sheet December 31, Year 2 Assets $ 0 Total assets Stockholders' equity TI Total stockholders' equity
