Homework Help is Here – Start Your Trial Now!
Business
Accounting
Perez Modems, Inc. acquired a subsidiary named Anywhere, Inc. (Al). 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. Work in process inventory Finished goods inventory Common stock Retained earnings Totals $209,500 4,180 6,290 7,330 $227,300 $135, 130 92,170 $227,300 The subsidiary completed the following transactions during Year 2. 1. Paid $62,850 cash for direct raw materials. 2. Transferred $52,390 of direct raw materials to work in process. 3. Paid production employees $83,830 cash. 4. Applied $55,520 of manufacturing overhead costs to work in process. 5. Completed work on products that cost $170,740. 6. Sold products that cost $149,790 for $190,660 cash. Record the recognition of revenue in a row labeled 6a and the cost of goods sold in a row labeled 6b. 7. Paid $20,950 cash for selling and administrative expenses. 8. Actual overhead costs paid in cash amounted to $57,590. 9. Closed the Manufacturing Overhead account. The amount of over- or underapplied overhead was insignificant (immaterial). 10. Made a $5,220 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.

Perez Modems, Inc. acquired a subsidiary named Anywhere, Inc. (Al). 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. Work in process inventory Finished goods inventory Common stock Retained earnings Totals $209,500 4,180 6,290 7,330 $227,300 $135, 130 92,170 $227,300 The subsidiary completed the following transactions during Year 2. 1. Paid $62,850 cash for direct raw materials. 2. Transferred $52,390 of direct raw materials to work in process. 3. Paid production employees $83,830 cash. 4. Applied $55,520 of manufacturing overhead costs to work in process. 5. Completed work on products that cost $170,740. 6. Sold products that cost $149,790 for $190,660 cash. Record the recognition of revenue in a row labeled 6a and the cost of goods sold in a row labeled 6b. 7. Paid $20,950 cash for selling and administrative expenses. 8. Actual overhead costs paid in cash amounted to $57,590. 9. Closed the Manufacturing Overhead account. The amount of over- or underapplied overhead was insignificant (immaterial). 10. Made a $5,220 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Ayúdame por favor!

Event No. Beg. Bal. 1. 2. 3. 4. 5. 6a. 6b. 7. 8. 9. 10. Total Cash + $ 209,500 + + + + + + + + + + + + $ 209,500 + Manufacturing Overhead $ + + + + + + + + + + + + + Assets Raw Materials $ Balance Sheet + 4,180 + 62,850 + (52,390) + + + + + + + + + + + 0 + $ 14,640 + Work in Process $ $ + 6,290 + + 52,390 + + + + + + + + + + 58,680 + Finished Goods $ $ Equity Common Stock 7,330 = $135,130 + 7,330 = + + + + ++++ + + + Retained Earnings $ 92,170 $135,130 + $ 92,170 Revenue $ 0 Income Statement Expense = Net Income $ || = 0 = 0
Transcribed Image Text:Event No. Beg. Bal. 1. 2. 3. 4. 5. 6a. 6b. 7. 8. 9. 10. Total Cash + $ 209,500 + + + + + + + + + + + + $ 209,500 + Manufacturing Overhead $ + + + + + + + + + + + + + Assets Raw Materials $ Balance Sheet + 4,180 + 62,850 + (52,390) + + + + + + + + + + + 0 + $ 14,640 + Work in Process $ $ + 6,290 + + 52,390 + + + + + + + + + + 58,680 + Finished Goods $ $ Equity Common Stock 7,330 = $135,130 + 7,330 = + + + + ++++ + + + Retained Earnings $ 92,170 $135,130 + $ 92,170 Revenue $ 0 Income Statement Expense = Net Income $ || = 0 = 0
Perez Modems, Inc. acquired a subsidiary named Anywhere, Inc. (Al). 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 Work in process inventory Finished goods inventory Common stock Retained earnings Totals $209,500 4,180 6,290 7,330 $227,300 $135, 130 92,170 $227,300 The subsidiary completed the following transactions during Year 2. 1. Paid $62,850 cash for direct raw materials. 2. Transferred $52,390 of direct raw materials to work in process. 3. Paid production employees $83,830 cash. 4. Applied $55,520 of manufacturing overhead costs to work in process. 5. Completed work on products that cost $170,740. 6. Sold products that cost $149,790 for $190,660 cash. Record the recognition of revenue in a row labeled 6a and the cost of goods sold in a row labeled 6b. 7. Paid $20,950 cash for selling and administrative expenses. 8. Actual overhead costs paid in cash amounted to $57,590. 9. Closed the Manufacturing Overhead account. The amount of over- or underapplied overhead was insignificant (immaterial). 10. Made a $5,220 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.
Transcribed Image Text:Perez Modems, Inc. acquired a subsidiary named Anywhere, Inc. (Al). 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 Work in process inventory Finished goods inventory Common stock Retained earnings Totals $209,500 4,180 6,290 7,330 $227,300 $135, 130 92,170 $227,300 The subsidiary completed the following transactions during Year 2. 1. Paid $62,850 cash for direct raw materials. 2. Transferred $52,390 of direct raw materials to work in process. 3. Paid production employees $83,830 cash. 4. Applied $55,520 of manufacturing overhead costs to work in process. 5. Completed work on products that cost $170,740. 6. Sold products that cost $149,790 for $190,660 cash. Record the recognition of revenue in a row labeled 6a and the cost of goods sold in a row labeled 6b. 7. Paid $20,950 cash for selling and administrative expenses. 8. Actual overhead costs paid in cash amounted to $57,590. 9. Closed the Manufacturing Overhead account. The amount of over- or underapplied overhead was insignificant (immaterial). 10. Made a $5,220 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.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Merchandise Inventory
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS