Flint Company 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. Flint 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 $481. The standalone selling price of the tablet is $225 (the cost to Flint Company is $174). Flint Company sells the Internet access service independently for an upfront payment of $308. On January 2, 2020, Flint Company signed 100 contracts, receiving a total of $48,100 in cash. 2. Flint 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 $586. Flint Company provides the 3-year tablet service plan as a separate product with a standalone selling price of $152. Flint Company signed 200 contracts for Flint Bundle B on July 1, 2020, receiving a total of $117,200 in cash. Prepare any journal entries to record the revenue arrangement for Flint Bundle A on January 2, 2020, and December 31, 2020. (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.) Prepare any journal entries to record the revenue arrangement for Flint Bundle B on July 1, 2020, and December 31, 2020. (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.) Repeat the requirements for part (a), assuming that Flint Company 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.)

Flint Company 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. Flint 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 $481. The standalone selling price of the tablet is $225 (the cost to Flint Company is $174). Flint Company sells the Internet access service independently for an upfront payment of $308. On January 2, 2020, Flint Company signed 100 contracts, receiving a total of $48,100 in cash. 2. Flint 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 $586. Flint Company provides the 3-year tablet service plan as a separate product with a standalone selling price of $152. Flint Company signed 200 contracts for Flint Bundle B on July 1, 2020, receiving a total of $117,200 in cash. Prepare any journal entries to record the revenue arrangement for Flint Bundle A on January 2, 2020, and December 31, 2020. (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.) Prepare any journal entries to record the revenue arrangement for Flint Bundle B on July 1, 2020, and December 31, 2020. (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.) Repeat the requirements for part (a), assuming that Flint Company 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.)

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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1.		Flint 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 $481. The standalone selling price of the tablet is $225 (the cost to Flint Company is $174). Flint Company sells the Internet access service independently for an upfront payment of $308. On January 2, 2020, Flint Company signed 100 contracts, receiving a total of $48,100 in cash.
2.		Flint 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 $586. Flint Company provides the 3-year tablet service plan as a separate product with a standalone selling price of $152. Flint Company signed 200 contracts for Flint Bundle B on July 1, 2020, receiving a total of $117,200 in cash.

Prepare any journal entries to record the revenue arrangement for Flint Bundle A on January 2, 2020, and December 31, 2020. (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.)

Prepare any journal entries to record the revenue arrangement for Flint Bundle B on July 1, 2020, and December 31, 2020. (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.)

Repeat the requirements for part (a), assuming that Flint Company 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.)

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