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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
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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