BigBoy Equipment Inc. sells heavy-duty forklift trucks. Model 217A has a stand-alone price of $154,000. BigBoy offers to sell the 217A inclusive of a three-year service contract for $198,200. Required: Prepare a journal entry to record the sale of one Model 217A forklift truck plus service contract for $198,200 assuming: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1. A comparable service contract is sold separately for $66,000. BigBoy uses the relative stand-alone value method for multiple deliverables. 2. The service contract has a variable stand-alone value ranging from $38,400 to $66,000 and BigBoy uses the residual value method. Viow transaction list 1 Record the sale of Model 217A assuming comparable service contract Is sold separately and using relative falr value method. Is sold 2 Record the sale of Model 217A assuming the service contract has a varlable stand-alone value ranging from $30,000 to $70,000 and BigBoy uses the residual method. Credit Note: = journal entry has been entered Rocord antry Clear antry Viow ganeral journal

BigBoy Equipment Inc. sells heavy-duty forklift trucks. Model 217A has a stand-alone price of $154,000. BigBoy offers to sell the 217A inclusive of a three-year service contract for $198,200. Required: Prepare a journal entry to record the sale of one Model 217A forklift truck plus service contract for $198,200 assuming: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1. A comparable service contract is sold separately for $66,000. BigBoy uses the relative stand-alone value method for multiple deliverables. 2. The service contract has a variable stand-alone value ranging from $38,400 to $66,000 and BigBoy uses the residual value method. Viow transaction list 1 Record the sale of Model 217A assuming comparable service contract Is sold separately and using relative falr value method. Is sold 2 Record the sale of Model 217A assuming the service contract has a varlable stand-alone value ranging from $30,000 to $70,000 and BigBoy uses the residual method. Credit Note: = journal entry has been entered Rocord antry Clear antry Viow ganeral journal

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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