7 Cullumber Corp. designs and builds custom harvesting equipment for logging companies across Canada. The company, which ispublicly traded, has a May 31 year end. On February 18, 2024, Cullumber signed a contract with Bonita Harvesting Ltd. to design andbuild 25 custom harvesters that can harvest wood at the steep grades found along many of the Pacific Coast timber stands included inBonita's harvesting leases. The following events took place in 2024 in relation to the contract:1. February 18: Officials from Cullumber and Bonita sign the contract. The contract was for $3.4 million. Cullumber is to design,manufacture, and deliver the 25 machines to Bonita's operations centre in Duncan, British Columbia. Cullumber'smanagement estimates that the design component of the contract would be valued at $552,000 if contracted for separately.while the machine construction component of the contract would be valued at $3.3 million if the machines were purchasedseparately. Cullumber agrees to provide a three-year assurance-type warranty for the machines, and the company'smanagement estimates that the warranty claims would total $294,000 based on past experience. Bonita agrees to pay a$1.240,000 deposit within 10 days of signing the contract and to pay the balance within 15 days of the equipment beingdelivered.February 25: Bonita pays the deposit specified in the contract.March 28: Cullumber's engineering staff complete the equipment design and it is approved by officials from Bonita.May 18: Cullumber completes construction of the 25 harvesters.May 20: The 25 harvesters are loaded onto Cullumber's trucks and are delivered to Bonita's operation centre in Duncan laterthat day.June 2: Bonita pays the balance owing on the contract.2.3.4.5.6.(a1)- Your answer is partially correct.Determine when and how much revenue Cullumber would be able to recognize for the year ended May 31, 2024. (Roundallocation percentage to 2 decimal places, e.g. 15.25% and final answers to O decimal places, e.g. 125.)Revenue recognized on February 25, 2024Revenue recognized on May 20, 2024(b)e Textbook and MediaList of Accounts6969$1,240,0003,400,000Attempts: 2 of 2 usedPrepare Cullumber's required journal entries for all of the dates appearing above along with any other necessary journal entriesfor the contract based on your analysis in part (a). (Credit account titles are automatically indented when amount is entered. Do notindent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries beforecredit entries. Round answers to O decimal places, e.g. 125.)

The money a company receives from the selling of products and services is known as revenue. Revenue,…

Cullumber Corp. designs and builds custom harvesting equipment for logging companies across Canada. The company, which is publicly traded, has a May 31 year end. On February 18, 2024, Cullumber signed a contract with Bonita Harvesting Ltd. to design and build 25 custom harvesters that can harvest wood at the steep grades found along many of the Pacific Coast timber stands included in Bonita's harvesting leases. The following events took place in 2024 in relation to the contract 1. February 18: Officials from Cullumber and Bonita sign the contract. The contract was for $3.4 million. Cullumber is to design. manufacture, and deliver the 25 machines to Bonita's operations centre in Duncan, British Columbia. Cullumber's management estimates that the design component of the contract would be valued at $552,000 if contracted for separately. while the machine construction component of the contract would be valued at $3.3 million if the machines were purchased separately. Cullumber agrees to provide a three-year assurance-type warranty for the machines, and the company's management estimates that the warranty claims would total $294,000 based on past experience. Bonita agrees to pay a $1,240,000 deposit within 10 days of signing the contract and to pay the balance within 15 days of the equipment being delivered. 2. February 25: Bonita pays the deposit specified in the contract. 3. March 28: Cullumber's engineering staff complete the equipment design and it is approved by officials from Bonita. May 18: Cullumber completes construction of the 25 harvesters. May 20: The 25 harvesters are loaded onto Cullumber's trucks and are delivered to Bonita's operation centre in Duncan later that day. June 2: Bonita pays the balance owing on the contract. 5. 6. (a1) Your answer is partially correct. Determine when and how much revenue Cullumber would be able to recognize for the year ended May 31, 2024. (Round allocation percentage to 2 decimal places, eg. 15.25% and final answers to 0 decimal places, e.g. 125.) Revenue recognized on February 25, 2024 Revenue recognized on May 20, 2024 S 1.240,000 3,400,000