Blossom Company sells goods on credit that cost $315,000 to Daniel Company for $415.500 on January 2, 2025. The sales price includes an installation fee, which has a standalone selling price of $42,000. The standalone selling price of the goods is $373.500. The installation is considered a separate performance obligation and is expected to take 6 months to complete. (a) Your answer is correct. Prepare the journal entries (if any) to record the sale on January 2, 2025. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries) Date Jan. 2, 2025 (b) Jan. 2, 2025 Account Titles and Explanation Accounts Receivable Sales revenue Gross profit Sales Revenue Unearned Service Revenue (To record sales on account) Cost of Goods Sold Inventory First Quarter Cost of goods sold Debit $ 415500 315000 Credit Blossom prepares an income statement for the first quarter of 2025, ending on March 31, 2025 (installation was completed on June 18, 2025). How much revenue should Blossom recognize related to its sale to Daniel? 373500 42000 II 315000
Blossom Company sells goods on credit that cost $315,000 to Daniel Company for $415.500 on January 2, 2025. The sales price includes an installation fee, which has a standalone selling price of $42,000. The standalone selling price of the goods is $373.500. The installation is considered a separate performance obligation and is expected to take 6 months to complete. (a) Your answer is correct. Prepare the journal entries (if any) to record the sale on January 2, 2025. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries) Date Jan. 2, 2025 (b) Jan. 2, 2025 Account Titles and Explanation Accounts Receivable Sales revenue Gross profit Sales Revenue Unearned Service Revenue (To record sales on account) Cost of Goods Sold Inventory First Quarter Cost of goods sold Debit $ 415500 315000 Credit Blossom prepares an income statement for the first quarter of 2025, ending on March 31, 2025 (installation was completed on June 18, 2025). How much revenue should Blossom recognize related to its sale to Daniel? 373500 42000 II 315000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
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Transcribed Image Text:Blossom Company sells goods on credit that cost $315,000 to Daniel Company for $415.500 on January 2, 2025. The sales price
includes an installation fee, which has a standalone selling price of $42,000. The standalone selling price of the goods is $373,500. The
installation is considered a separate performance obligation and is expected to take 6 months to complete.
(a)
Your answer is correct.
Prepare the journal entries (if any) to record the sale on January 2, 2025. (Credit account titles are automatically indented when
amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List
all debit entries before credit entries)
(b)
Date
Jan. 2, 2025
Jan. 2, 2025
Account Titles and Explanation
Accounts Receivable
Sales Revenue
Uneared Service Revenue
(To record sales on account)
Cost of Goods Sold
Sales revenue
Gross profit
Inventory
First Quarter
Cost of goods sold
Debit
$
415500
315000
Credit
Blossom prepares an income statement for the first quarter of 2025, ending on March 31, 2025 (installation was completed on
June 18, 2025). How much revenue should Blossom recognize related to its sale to Daniel?
373500
42000
II
315000
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