Epic Rentals would like to take advantage of the bundle price for its 370-unit project; on February 1, 2020, Cheyenne signs acontract with Epic for 370 bundles. Under the agreement, Cheyenne will hold the appliance bundles in its warehouses until thenew rental units are ready for installation. Epic pays 10% cash at contract signing. On April 1, 2020, Cheyenne completesmanufacture of the appliances in the Epic bundle order and places them in the warehouse. Cheyenne and Epic have documentedthe warehouse arrangement and identified the units designated for Epic. The units are ready to ship, and Cheyenne may not sellthese units to other customers. Prepare journal entries for Cheyenne on (1) February 1, 2020, and (2) April 1, 2020. (Credit accounttitles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for theaccount titles and enter O for the amounts.)DateAccount Titles and ExplanationDebitCreditFeb. 1,2020Apr. 1,2020(To record sales) Cheyenne Appliance Co. manufactures low-price, no-frills appliances that are in great demand for rental units. Pricing and costinformation on Cheyenne's main products are as follows.StandaloneItemSelling Price (Cost)Refrigerator$510($260 )Range570(280 )Stackable washer/dryer unit710(390 )Customers can contract to purchase either individually at the stated prices or a three-item bundle with a price of $1,830. The bundleprice includes delivery and installation. Cheyenne also provides installation (not a separate performance obligation).Respond to the requirements related to the following independent revenue arrangements for Cheyenne Appliance Co.

Cheyenne Appliance Co. manufactures low-price, no-frills appliances that are in great demand for rental units. Pricing and cost information on Cheyenne's main products are as follows. Standalone Item Selling Price (Cost) Refrigerator $510 ($260 ) Range 570 (280 ) Stackable washer/dryer unit 710 (390 ) Customers can contract to purchase either individually at the stated prices or a three-item bundle with a price of $1,830. The bundle price includes delivery and installation. Cheyenne also provides installation (not a separate performance obligation). Respond to the requirements related to the following independent revenue arrangements for Cheyenne Appliance Co.

Cheyenne Appliance Co. manufactures low-price, no-frills appliances that are in great demand for rental units. Pricing and cost information on Cheyenne's main products are as follows. Standalone Item Selling Price (Cost) Refrigerator $510 ($260 ) Range 570 (280 ) Stackable washer/dryer unit 710 (390 ) Customers can contract to purchase either individually at the stated prices or a three-item bundle with a price of $1,830. The bundle price includes delivery and installation. Cheyenne also provides installation (not a separate performance obligation). Respond to the requirements related to the following independent revenue arrangements for Cheyenne Appliance Co.

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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