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On December 31, 2023, Pharoah Company sells production equipment to Coronado Inc. for $51,300. Pharoah includes a one-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on December 31, 2023. Pharoah estimates the prices to be $48,000 for the equipment and $3,300 for the cost of warranty. (a) Are the sale of the equipment and the warranty separate performance obligations within the contract? (b) Your answer is correct. No eTextbook and Media List of Accounts Attempts: 2 of 3 used Prepare a single compound journal entry to record this transaction on December 31, 2023. Ignore any related cost of goods sold entry. (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. List all debit entries before credit entries.)

On December 31, 2023, Pharoah Company sells production equipment to Coronado Inc. for $51,300. Pharoah includes a one-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on December 31, 2023. Pharoah estimates the prices to be $48,000 for the equipment and $3,300 for the cost of warranty. (a) Are the sale of the equipment and the warranty separate performance obligations within the contract? (b) Your answer is correct. No eTextbook and Media List of Accounts Attempts: 2 of 3 used Prepare a single compound journal entry to record this transaction on December 31, 2023. Ignore any related cost of goods sold entry. (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. List all debit entries before credit entries.)

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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On December 31, 2023, Pharoah Company sells production equipment to Coronado Inc. for $51,300. Pharoah includes a one-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on December 31, 2023. Pharoah estimates the prices to be $48,000 for the equipment and $3,300 for the cost of warranty. (a) Are the sale of the equipment and the warranty separate performance obligations within the contract? (b) Your answer is correct. No eTextbook and Media List of Accounts Prepare a single compound journal entry to record this transaction on December 31, 2023. Ignore any related cost of goods sold entry. (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. List all debit entries before credit entries.) Account Titles and Explanation Debit Attempts: 2 of 3 used Credit [[
Transcribed Image Text:On December 31, 2023, Pharoah Company sells production equipment to Coronado Inc. for $51,300. Pharoah includes a one-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on December 31, 2023. Pharoah estimates the prices to be $48,000 for the equipment and $3,300 for the cost of warranty. (a) Are the sale of the equipment and the warranty separate performance obligations within the contract? (b) Your answer is correct. No eTextbook and Media List of Accounts Prepare a single compound journal entry to record this transaction on December 31, 2023. Ignore any related cost of goods sold entry. (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. List all debit entries before credit entries.) Account Titles and Explanation Debit Attempts: 2 of 3 used Credit [[
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Prepare a single compound journal entry, assuming that, in addition to the assurance warranty, Pharoah sold an extended warranty (service-type warranty) for an additional two years (2025-2026) for $990. (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. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit
Transcribed Image Text:Prepare a single compound journal entry, assuming that, in addition to the assurance warranty, Pharoah sold an extended warranty (service-type warranty) for an additional two years (2025-2026) for $990. (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. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit
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