Zachary 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	$	184,600
Raw materials inventory		3,680
Work in process inventory		5,530
Finished goods inventory		6,450
Common stock					$	119,060
Retained earnings						81,200
Totals	$	200,260			$	200,260

The subsidiary completed the following transactions during 2017:

1. Paid $55,380 cash for direct raw materials.

2. Transferred $46,160 of direct raw materials to work in process.

3. Paid production employees $73,860 cash.

4. Applied $48,910 of manufacturing overhead costs to work in process.

5. Completed work on products that cost $150,410.

6. Sold products that cost $131,950 for $167,950 cash. Record the recognition of revenue in a row labeled 6a and the cost of goods sold in a row labeled 6b.

7. Paid $18,450 cash for selling and administrative expenses.

8. Actual overhead costs paid in cash amounted to $50,710.

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

10. Made a $4,580 cash distribution to the owners.

REQUIRED

A1. Prepare an Income Statement.

ANYWHERE, INC.
Income Statement
For Year Ended December 31, 2017
Sales revenue
Cost of goods sold
Gross margin	0
Selling and administrative expenses
Net income	$0

A2. Prepare a Balance Sheet.

ANYWHERE, INC.
Balance Sheet
December 31, 2017
Assets
Cash
Finished goods inventory
Raw materials inventory
Work in process inventory
Total assets	$0
Stockholders' equity
Common stock
Retained earnings
Total stockholders' equity	$0