Check my workArrow 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 30November 20X1. (If no entry Is requlred for a transactlon/event, select "No Journal entry required" In the first accountfleld. Round percentage answers to nearest whole percent. Round final answer to the nearest whole dollar. )View transaction listJournal entry worksheet12>Record the contract for delivery of equipment.Note: Enter debits before credits.DateGeneral JournalDebitCredit1 June 20X1Accounts receivable625,400Revenue-Equipment380,920Contract liability15,774Record entryClear entryView general journalView transaction listJournal entry worksheet2>Record the liability related to the contract.Note: Enter debits before credits.DateGeneral JournalDebitCredit30 November20X1Contract liability2,629Revenue-Maintenance contract2,629Record entryClear entryView general journal

The contract of 500000 has two separate performance obligations. 1. To sell the equipment having a…

Arrow Co. entered Into a contract with a customer for $500,000. The contract is for the dellvery 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 required for a transactlon/event, select "No Journal entry required" In the first account

Arrow Co. entered Into a contract with a customer for $500,000. The contract is for the dellvery 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 required for a transactlon/event, select "No Journal entry required" In the first account

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 58P

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