On January 1, 2023, Crane Company enters into a contract to transfer Product A and Product B to Shamrock Co. for $132,000. The contract specifies that payment for Product A will not occur until Product B is also delivered. In other words, payment will not occur until both Product A and Product B are transferred to Shamrock. Crane determines that stand-alone prices are $31,200 for Product A and $100,800 for Product B. Crane delivers Product A to Shamrock on February 1, 2023. On March 1, 2023, Crane delivers Product B to Shamrock. What journal entries should Crane make in regard to this contract in 2023? (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. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles Debit Credit

On January 1, 2023, Crane Company enters into a contract to transfer Product A and Product B to Shamrock Co. for $132,000. The contract specifies that payment for Product A will not occur until Product B is also delivered. In other words, payment will not occur until both Product A and Product B are transferred to Shamrock. Crane determines that stand-alone prices are $31,200 for Product A and $100,800 for Product B. Crane delivers Product A to Shamrock on February 1, 2023. On March 1, 2023, Crane delivers Product B to Shamrock. What journal entries should Crane make in regard to this contract in 2023? (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. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles Debit Credit

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 7C: On January 1, 2019, Mopps Corp. agrees to provide Conklin Company 3 years of cleaning and janitorial...

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On January 1, 2018, an entity enters into a contract to transfer Products C and D to a customer in exchange for P1,000. The contract requires Product C to be delivered first and states that payment for the delivery of Product C is conditional on the delivery of Product D. The stand-alone selling prices of Product C and D are P480 and P720, respectively. Product C is delivered on January 3, 2018 while Product D is delivered on March 31, 2018. The customer pays on April 8, 2018. How much is the balance of contract liability on January 3, 2018?
On January 1, 2020, Gordon Co. enters into a contract to sell a customer a wiring base and shelving unit that sits on the base in exchange for $3,000. The contract requires delivery of the base first but states that payment for the base will not be made until the shelving unit is delivered. Gordon identifies two performance obligations and allocates $1,200 of the transaction price to the wiring base and the remainder to the shelving unit. The cost of the wiring base is $700; the shelves have a cost of $320. Instructions a. Prepare the journal entry on January 1, 2020, for Gordon. b. Prepare the journal entry on February 5, 2020, for Gordon when the wiring base is delivered to the customer. c. Prepare the journal entry on February 25, 2020, for Gordon when the shelving unit is delivered to the customer and Gordon receives full payment.
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