Carla Vista Windows manufactures and sells custom storm windows for three-season porches. Carla Vista also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Carla Vista enters into the following contract on July 1, 2025, with a local homeowner. The customer purchases windows for a price of $2,630 and chooses Carla Vista to do the installation. Carla Vista charges the same price for the windows irrespective of whether it does the installation or not. The customer pays Carla Vista $1,960 (which equals the standalone selling price of the windows, which have a cost of $1,210) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2025, Carla Vista completes installation on October 15, 2025, and the customer pays the balance due. (a) Carla Vista estimates the standalone selling price of the installation based on an estimated cost of $700 plus a margin of 20% on cost. Prepare the journal entries for Carla Vista in 2025. (Credit account titles are automatically indented when the 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. Round answer to O decimal places, e.g. 5,125. List all debit entries before credit entries. Record journal entries in the order presented in the problem. Do not round intermediate calculations.) Credit
Carla Vista Windows manufactures and sells custom storm windows for three-season porches. Carla Vista also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Carla Vista enters into the following contract on July 1, 2025, with a local homeowner. The customer purchases windows for a price of $2,630 and chooses Carla Vista to do the installation. Carla Vista charges the same price for the windows irrespective of whether it does the installation or not. The customer pays Carla Vista $1,960 (which equals the standalone selling price of the windows, which have a cost of $1,210) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2025, Carla Vista completes installation on October 15, 2025, and the customer pays the balance due. (a) Carla Vista estimates the standalone selling price of the installation based on an estimated cost of $700 plus a margin of 20% on cost. Prepare the journal entries for Carla Vista in 2025. (Credit account titles are automatically indented when the 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. Round answer to O decimal places, e.g. 5,125. List all debit entries before credit entries. Record journal entries in the order presented in the problem. Do not round intermediate calculations.) Credit
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 1RP
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Transcribed Image Text:Carla Vista Windows manufactures and sells custom storm windows for three-season porches. Carla Vista also provides installation
service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other
vendors. Carla Vista enters into the following contract on July 1, 2025, with a local homeowner. The customer purchases windows for
a price of $2,630 and chooses Carla Vista to do the installation. Carla Vista charges the same price for the windows irrespective of
whether it does the installation or not. The customer pays Carla Vista $1,960 (which equals the standalone selling price of the
windows, which have a cost of $1,210) upon delivery and the remaining balance upon installation of the windows. The windows are
delivered on September 1, 2025, Carla Vista completes installation on October 15, 2025, and the customer pays the balance due.
(a)
Carla Vista estimates the standalone selling price of the installation based on an estimated cost of $700 plus a margin of 20% on
cost.
Prepare the journal entries for Carla Vista in 2025. (Credit account titles are automatically indented when the 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. Round answer to O decimal
places, e.g. 5,125. List all debit entries before credit entries. Record journal entries in the order presented in the problem. Do not round
intermediate calculations.)
Credit
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