Thornton 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 $198,200 3,950 Work in process inventory 5,940 Finished goods inventory Common stock Retained earnings 6,930 $127,830 Totals $215,020 87,190 $215,020 The subsidiary completed the following transactions during Year 2. 1. Paid $59,460 cash for direct raw materials. 2. Transferred $49,560 of direct raw materials to work in process. 3. Paid production employees $79,300 cash. 4. Applied $52,510 of manufacturing overhead costs to work in process. 5. Completed work on products that cost $161,480. 6. Sold products that cost $141,660 for $180,310 cash. Record the recognition of revenue in a row labeled 6a and the cost of goods sold in a row labeled 6b. 7. Paid $19,810 cash for selling and administrative expenses. 8. Actual overhead costs paid in cash amounted to $54,450. 9. Closed the Manufacturing Overhead account. The amount of over- or underapplied overhead was insignificant (immaterial). 10. Made a $4,920 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.