Crane Company sells goods on credit that cost $320,000 to Paul Company for $404,500 on January 2, 2025. The sales price includes an installation fee, which has a standalone selling price of $44,000. The standalone selling price of the goods is $360,500. 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 Account Titles and Explanation Jan. 2, 2025 Accounts Receivable Sales Revenue Unearned Service Revenue (To record sales on account) Jan. 2, 2025 Cost of Goods Sold Inventory (To record cost of goods sold) eTextbook and Media List of Accounts Your answer is incorrect. Debit 404500 320000 Credit 360500 44000 320000 Attempts: unlimited Crane 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 Crane recognize related to its sale to Paul? First Quarter Sales revenue $ Cost of goods sold Gross profit $
Crane Company sells goods on credit that cost $320,000 to Paul Company for $404,500 on January 2, 2025. The sales price includes an installation fee, which has a standalone selling price of $44,000. The standalone selling price of the goods is $360,500. 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 Account Titles and Explanation Jan. 2, 2025 Accounts Receivable Sales Revenue Unearned Service Revenue (To record sales on account) Jan. 2, 2025 Cost of Goods Sold Inventory (To record cost of goods sold) eTextbook and Media List of Accounts Your answer is incorrect. Debit 404500 320000 Credit 360500 44000 320000 Attempts: unlimited Crane 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 Crane recognize related to its sale to Paul? First Quarter Sales revenue $ Cost of goods sold Gross profit $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Crane Company sells goods on credit that cost $320,000 to Paul Company for $404,500 on January 2, 2025. The sales price includes
an installation fee, which has a standalone selling price of $44,000. The standalone selling price of the goods is $360,500. 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
Account Titles and Explanation
Jan. 2, 2025
Accounts Receivable
Sales Revenue
Unearned Service Revenue
(To record sales on account)
Jan. 2, 2025
Cost of Goods Sold
Inventory
(To record cost of goods sold)
eTextbook and Media
List of Accounts
Your answer is incorrect.
Debit
404500
320000
Credit
360500
44000
320000
Attempts: unlimited
Crane 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 Crane recognize related to its sale to Paul?
First Quarter
Sales revenue
$
Cost of goods sold
Gross profit
$
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