Arrow Co. entered into a contract with a customer for $340,000. The contract is for the delivery of equipment and a 3-year service maintenance contract for the equipment. Arrow sells separately the equipment for a selling price of $312,000, and the maintenance contract for three years for $59,000. The equipment was delivered on 1 June 120X1. Arrow has a 30 November year-end. Required: Prepare the journal entries required to record the revenue related to this contract during the period 1 June 20X1 to 30 November 20X1 in accordance with IFRS. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round percentage answers to nearest whole percent. Round final answer to the nearest whole dollar.) View transaction list

Arrow Co. entered into a contract with a customer for $340,000. The contract is for the delivery of equipment and a 3-year service maintenance contract for the equipment. Arrow sells separately the equipment for a selling price of $312,000, and the maintenance contract for three years for $59,000. The equipment was delivered on 1 June 120X1. Arrow has a 30 November year-end. Required: Prepare the journal entries required to record the revenue related to this contract during the period 1 June 20X1 to 30 November 20X1 in accordance with IFRS. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round percentage answers to nearest whole percent. Round final answer to the nearest whole dollar.) View transaction list

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 10C

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Check my work Arrow Co. entered Into a contract with a customer for $500,000. The contract is for the dellivery of equipment and a 3- year service maintenance contract for the equipment. Arrow sells separately the equipment for a selling price of $482,000, and the maintenance contract for three years for $143,400. The equipment was delivered on 1 June 1 20X1. Arrow has a 30 November year-end. Requlred: Prepare the journal entries required to record the revenue related to this contract during the period 1 June 20X1 to 30 November 20X1. (If no entry Is requlred for a transactlon/event, select "No Journal entry required" In the first account fleld. Round percentage answers to nearest whole percent. Round final answer to the nearest whole dollar. ) View transaction list Journal entry worksheet 1 2 > Record the contract for delivery of equipment. Note: Enter debits before credits. Date General Journal Debit Credit 1 June 20X1 Accounts receivable 625,400 Revenue-Equipment 380,920 Contract…
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