Meyer & Smith is a full-service technology company. They provide equipment, installation services as well as training. Customers can purchase any product or service separately or as a bundled package. Carla Vista Corporation purchased computer equipment, installation and training for a total cost of $171180 on March 15, 2021. Estimated standalone fair values of the equipment, installation and training are $88500, $67200 and $34500 respectively. The journal entry to record the transaction on March 15, 2021 will include a credit to Sales Revenue for $171180. debit to Unearned Service Revenue of $34500. credit to Service Revenue of $67200. credit to Unearned Service Revenue of $31050.
Meyer & Smith is a full-service technology company. They provide equipment, installation services as well as training. Customers can purchase any product or service separately or as a bundled package. Carla Vista Corporation purchased computer equipment, installation and training for a total cost of $171180 on March 15, 2021. Estimated standalone fair values of the equipment, installation and training are $88500, $67200 and $34500 respectively. The journal entry to record the transaction on March 15, 2021 will include a credit to Sales Revenue for $171180. debit to Unearned Service Revenue of $34500. credit to Service Revenue of $67200. credit to Unearned Service Revenue of $31050.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 19E: Rix Company sells home appliances and provides installation and service for its customers. On April...
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Meyer & Smith is a full-service technology company. They provide equipment, installation services as well as training. Customers can purchase any product or service separately or as a bundled package. Carla Vista Corporation purchased computer equipment, installation and training for a total cost of $171180 on March 15, 2021. Estimated standalone fair values of the equipment, installation and training are $88500, $67200 and $34500 respectively. The
credit to Sales Revenue for $171180.
debit to Unearned Service Revenue of $34500.
credit to Service Revenue of $67200.
credit to Unearned Service Revenue of $31050.
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