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Crane Tailors sells tablet PCs combined with Internet service, which permits the tablet to connect to the Internet anywhere and set up a Wi-Fi hot spot. It offers two bundles with the following terms. 1. 2. Crane Bundle A sells a tablet with 3 years of Internet service. The price for the tablet and a 3-year Internet connection service contract is $471. The standalone selling price of the tablet is $243 (the cost to Crane Tailors is $163). Crane Tailors sells the Internet access service independently for an upfront payment of $283. On January 2, 2025, Crane Tailors signed 100 contracts, receiving a total of $47,100 in cash. Crane Bundle B includes the tablet and Internet service plus a service plan for the tablet PC (for any repairs or upgrades to the tablet or the Internet connections) during the 3-year contract period. That product bundle sells for $565. Crane Tailors provides the 3-year tablet service plan as a separate product with a standalone selling price of $159. Crane Tailors signed 180 contracts for Crane Bundle B on July 1, 2025, receiving a total of $101,700 in cash.

Crane Tailors sells tablet PCs combined with Internet service, which permits the tablet to connect to the Internet anywhere and set up a Wi-Fi hot spot. It offers two bundles with the following terms. 1. 2. Crane Bundle A sells a tablet with 3 years of Internet service. The price for the tablet and a 3-year Internet connection service contract is $471. The standalone selling price of the tablet is $243 (the cost to Crane Tailors is $163). Crane Tailors sells the Internet access service independently for an upfront payment of $283. On January 2, 2025, Crane Tailors signed 100 contracts, receiving a total of $47,100 in cash. Crane Bundle B includes the tablet and Internet service plus a service plan for the tablet PC (for any repairs or upgrades to the tablet or the Internet connections) during the 3-year contract period. That product bundle sells for $565. Crane Tailors provides the 3-year tablet service plan as a separate product with a standalone selling price of $159. Crane Tailors signed 180 contracts for Crane Bundle B on July 1, 2025, receiving a total of $101,700 in cash.

FINANCIAL ACCOUNTING
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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Crane Tailors sells tablet PCs combined with Internet service, which permits the tablet to connect to the Internet anywhere and set up a Wi-Fi hot spot. It offers two bundles with the following terms. 1. 2. Crane Bundle A sells a tablet with 3 years of Internet service. The price for the tablet and a 3-year Internet connection service contract is $471. The standalone selling price of the tablet is $243 (the cost to Crane Tailors is $163). Crane Tailors sells the Internet access service independently for an upfront payment of $283. On January 2, 2025, Crane Tailors signed 100 contracts, receiving a total of $47,100 in cash. Crane Bundle B includes the tablet and Internet service plus a service plan for the tablet PC (for any repairs or upgrades to the tablet or the Internet connections) during the 3-year contract period. That product bundle sells for $565. Crane Tailors provides the 3-year tablet service plan as a separate product with a standalone selling price of $159. Crane Tailors signed 180 contracts for Crane Bundle B on July 1, 2025, receiving a total of $101,700 in cash. Prepare any journal entries to record the revenue arrangement for Crane Bundle A on January 2, 2025, and December 31, 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 0 for the amounts. Round answers to 0 decimal places, e.g. 5,125. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation (To record sales) (To record cost of goods sold) Debit பப பப பப Prepare any journal entries to record the revenue arrangement for Crane Bundle B on July 1, 2025, and December 31, 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 0 for the amounts. Round answers to 0 decimal places, e.g. 5,125. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Dato
Transcribed Image Text:Crane Tailors sells tablet PCs combined with Internet service, which permits the tablet to connect to the Internet anywhere and set up a Wi-Fi hot spot. It offers two bundles with the following terms. 1. 2. Crane Bundle A sells a tablet with 3 years of Internet service. The price for the tablet and a 3-year Internet connection service contract is $471. The standalone selling price of the tablet is $243 (the cost to Crane Tailors is $163). Crane Tailors sells the Internet access service independently for an upfront payment of $283. On January 2, 2025, Crane Tailors signed 100 contracts, receiving a total of $47,100 in cash. Crane Bundle B includes the tablet and Internet service plus a service plan for the tablet PC (for any repairs or upgrades to the tablet or the Internet connections) during the 3-year contract period. That product bundle sells for $565. Crane Tailors provides the 3-year tablet service plan as a separate product with a standalone selling price of $159. Crane Tailors signed 180 contracts for Crane Bundle B on July 1, 2025, receiving a total of $101,700 in cash. Prepare any journal entries to record the revenue arrangement for Crane Bundle A on January 2, 2025, and December 31, 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 0 for the amounts. Round answers to 0 decimal places, e.g. 5,125. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation (To record sales) (To record cost of goods sold) Debit பப பப பப Prepare any journal entries to record the revenue arrangement for Crane Bundle B on July 1, 2025, and December 31, 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 0 for the amounts. Round answers to 0 decimal places, e.g. 5,125. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Dato
Prepare any journal entries to record the revenue arrangement for Crane Bundle B on July 1, 2025, and December 31, 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 answers 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.) Date Account Titles and Explanation (To record sales) Debit UU (To record cost of goods sold) C C UU Repeat the requirements for part (a), assuming that Crane Tailors has no reliable data with which to estimate the standalone selling price for the Internet service. (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 0 for the amounts. Round answers to 0 decimal places, e.g. 5,125. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation (To record sales) (To record cost of goods sold) Debit பப பப
Transcribed Image Text:Prepare any journal entries to record the revenue arrangement for Crane Bundle B on July 1, 2025, and December 31, 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 answers 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.) Date Account Titles and Explanation (To record sales) Debit UU (To record cost of goods sold) C C UU Repeat the requirements for part (a), assuming that Crane Tailors has no reliable data with which to estimate the standalone selling price for the Internet service. (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 0 for the amounts. Round answers to 0 decimal places, e.g. 5,125. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation (To record sales) (To record cost of goods sold) Debit பப பப
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