Comprehensive Problem (Algo) LO 11-1, 11-2, 11-3, 11-4

Stuart 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	$	188,000
Raw materials inventory		3,750
Work in process inventory		5,640
Finished goods inventory		6,580
Common stock					$	121,260
Retained earnings						82,710
Totals	$	203,970			$	203,970

The subsidiary completed the following transactions during Year 2.

Paid $56,400 cash for direct raw materials.

Transferred $47,010 of direct raw materials to work in process.

Paid production employees $75,220 cash.

Applied $49,810 of manufacturing overhead costs to work in process.

Completed work on products that cost $153,180.

Sold products that cost $134,380 for $171,040 cash. Record the recognition of revenue in a row labeled 6a and the cost of goods sold in a row labeled 6b.

Paid $18,790 cash for selling and administrative expenses.

Actual overhead costs paid in cash amounted to $51,650.

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

Made a $4,670 cash distribution to the owners.

Required

For Anywhere, Inc., record the events in a financial statements model. The first event is shown as an example.

Prepare a schedule of cost of goods manufactured and sold.

Prepare an income statement and a balance sheet.

For Anywhere, Inc., record the events in a financial statements model. The first event is shown as an example. account balances with a minus sign.) Prepare a schedule of cost of goods manufactured and sold. Prepare an income statement. Prepare a balance sheet