Do not give answer in image formate Current Attempt in ProgressCrane Company sells goods that cost $350,000 to Matthew Company for $425,000 on January 2, 2023. The sales price includes an installation fee, which is valued at $34,800. The fair value of the goodsis $400,200. The goods were delivered on March 1, 2023. Installation is considered a separate performance obligation and was completed on June 18, 2023. Under the terms of the contract, Matthewpays Crane $262,000 on delivery of the goods and the balance at the completion of the installation.(a) Prepare the journal entries for Crane on January 2, March 1, and June 18, 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manuallyselect "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.)DateJanuary 2, 2023 ✓March 1, 2023March 1, 2023March 1, 2023June 18, 2023Account Titles and ExplanationCashUnearned RevenueUnearned RevenueSales RevenueSales Revenue(To record sales)Cost of Goods SoldInventoryVIII)Cost of Goods SoldInventory(To record cost of goods sold)Unearned RevenueSales RevenueSales RevenueDebit425,000425,000350,000350,000163,000Credit425,00034,000391,000350,000350,000

As per accounting principle, the revenue is recognized when the ownership in the good is transferred…

Current Attempt in Progress Crane Company sells goods that cost $350,000 to Matthew Company for $425,000 on January 2, 2023. The sales price includes an installation fee, which is valued at $34,800. The fair value of the goods is $400,200. The goods were delivered on March 1, 2023. Installation is considered a separate performance obligation and was completed on June 18, 2023. Under the terms of the contract, Matthew pays Crane $262,000 on delivery of the goods and the balance at the completion of the installation. (a)

Current Attempt in Progress Crane Company sells goods that cost $350,000 to Matthew Company for $425,000 on January 2, 2023. The sales price includes an installation fee, which is valued at $34,800. The fair value of the goods is $400,200. The goods were delivered on March 1, 2023. Installation is considered a separate performance obligation and was completed on June 18, 2023. Under the terms of the contract, Matthew pays Crane $262,000 on delivery of the goods and the balance at the completion of the installation. (a)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 13E: On March 1, 2019, Elkhart enters into a new contract to build a specialized warehouse for 7 million....

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On March 1, 2019, Elkhart enters into a new contract to build a specialized warehouse for 7 million. The promise to transfer the warehouse is determined to be a performance obligation. The contract states that if the warehouse is usable by November 30, 2019, Elkhart will receive a bonus of 600,000. For every week after November 30 that the warehouse is not usable, the bonus will decrease by 150,000. Elkhart provides the following completion schedule: Required: 1. Assume that Elkhart uses the expected value approach. What amount should Elkhart use for the transaction price? 2. Assume that Elkhart uses the most likely amount approach. What amount should Elkhart use for the transaction price? 3. Next Level What is the purpose of assessing whether a constraint on the variable consideration exists?
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