Question: PLEASE ANSWER IN THE SAME FORMAT AS THE BOXES BELOW Franklin Modems, Inc. acquired a subsidiary named Anywhere, Inc. (AI). AI manufactures a wireless modem
PLEASE ANSWER IN THE SAME FORMAT AS THE BOXES BELOW
Franklin 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 | $ | 191,000 | ||||||
| Raw materials inventory | 3,810 | |||||||
| Work in process inventory | 5,730 | |||||||
| Finished goods inventory | 6,680 | |||||||
| Common stock | $ | 123,190 | ||||||
| Retained earnings | 84,030 | |||||||
| Totals | $ | 207,220 | $ | 207,220 | ||||
The subsidiary completed the following transactions during 2017:
Paid $57,300 cash for direct raw materials.
Transferred $47,750 of direct raw materials to work in process.
Paid production employees $76,400 cash.
Applied $50,610 of manufacturing overhead costs to work in process.
Completed work on products that cost $155,640.
Sold products that cost $136,540 for $173,790 cash. Record the recognition of revenue in a row labeled 6a and the cost of goods sold in a row labeled 6b.
Paid $19,100 cash for selling and administrative expenses.
Actual overhead costs paid in cash amounted to $52,510.
Closed the Manufacturing Overhead account. The amount of over- or underapplied overhead was insignificant (immaterial).
Made a $4,760 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.
Req A
Req B
Req C Inc Stmt
Req C Bal Sheet
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.)
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Prepare a schedule of cost of goods manufactured and sold.
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Req A
Req B
Req C Inc Stmt
Req C Bal Sheet
Prepare an income statement.
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Prepare a balance sheet.
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