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
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.
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A2. Prepare a Balance Sheet.
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Related questions
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
A. For Anywhere, Inc., record the events in a horizontal statements model. The first event is shown as an example.\
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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
A. Prepare a schedule of cost of goods manufactured and sold.
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