OrioleCompany 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. Oriole 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 $485. The standalone selling price of the tablet is $256 (the cost to Oriole Company is $165). Oriole Company sells the Internet access service independently for an upfront payment of $280. On January 2, 2020, Oriole Company signed 100 contracts, receiving a total of $48,500 in cash. 2. Oriole 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 $578. Oriole Company provides the 3-year tablet service plan as a separate product with a standalone selling price of $155. Oriole Company signed 200 contracts for Oriole Bundle B on July 1, 2020, receiving a total of $115,600 in cash. (a) Prepare any journal entries to record the revenue arrangement for Oriole Bundle A on January 2, 2020, and December 31, 2020. (b) Prepare any journal entries to record the revenue arrangement for Oriole 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.) Date Account Titles and Explanation Debit Credit choose a transaction date enter an account title to record sales enter a debit amount enter a credit amount enter an account title to record sales enter a debit amount enter a credit amount enter an account title to record sales enter a debit amount enter a credit amount enter an account title to record sales enter a debit amount enter a credit amount (To record sales) enter an account title to record cost of goods sold enter a debit amount enter a credit amount enter an account title to record cost of goods sold enter a debit amount enter a credit amount (To record cost of goods sold) choose a transaction date enter an account title (c) Repeat the requirements for part (a), assuming that Oriole 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.) Date Account Titles and Explanation Debit Credit choose a transaction date enter an account title to record sales enter a debit amount enter a credit amount enter an account title to record sales enter a debit amount enter a credit amount enter an account title to record sales enter a debit amount enter a credit amount (To record sales) enter an account title to record cost of goods sold enter a debit amount enter a credit amount enter an account title to record cost of goods sold enter a debit amount enter a credit amount (To record cost of goods sold) choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount Part a is already solved. Only need B and C answered! A. Account Titles and Explanation debit credit cash 48500 Sales Rev 23164.18 Unearned Serv-Internet 25335.82 (to record sales) Cost of Goods Sold 16500 inventory 16500 (to record cost of goods sold) Unearned serv-Internet 8445.27 service revenue 8445.27

OrioleCompany 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. Oriole 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 $485. The standalone selling price of the tablet is $256 (the cost to Oriole Company is $165). Oriole Company sells the Internet access service independently for an upfront payment of $280. On January 2, 2020, Oriole Company signed 100 contracts, receiving a total of $48,500 in cash. 2. Oriole 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 $578. Oriole Company provides the 3-year tablet service plan as a separate product with a standalone selling price of $155. Oriole Company signed 200 contracts for Oriole Bundle B on July 1, 2020, receiving a total of $115,600 in cash. (a) Prepare any journal entries to record the revenue arrangement for Oriole Bundle A on January 2, 2020, and December 31, 2020. (b) Prepare any journal entries to record the revenue arrangement for Oriole 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.) Date Account Titles and Explanation Debit Credit choose a transaction date enter an account title to record sales enter a debit amount enter a credit amount enter an account title to record sales enter a debit amount enter a credit amount enter an account title to record sales enter a debit amount enter a credit amount enter an account title to record sales enter a debit amount enter a credit amount (To record sales) enter an account title to record cost of goods sold enter a debit amount enter a credit amount enter an account title to record cost of goods sold enter a debit amount enter a credit amount (To record cost of goods sold) choose a transaction date enter an account title (c) Repeat the requirements for part (a), assuming that Oriole 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.) Date Account Titles and Explanation Debit Credit choose a transaction date enter an account title to record sales enter a debit amount enter a credit amount enter an account title to record sales enter a debit amount enter a credit amount enter an account title to record sales enter a debit amount enter a credit amount (To record sales) enter an account title to record cost of goods sold enter a debit amount enter a credit amount enter an account title to record cost of goods sold enter a debit amount enter a credit amount (To record cost of goods sold) choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount Part a is already solved. Only need B and C answered! A. Account Titles and Explanation debit credit cash 48500 Sales Rev 23164.18 Unearned Serv-Internet 25335.82 (to record sales) Cost of Goods Sold 16500 inventory 16500 (to record cost of goods sold) Unearned serv-Internet 8445.27 service revenue 8445.27

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

(b)

Prepare any journal entries to record the revenue arrangement for Oriole 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.)

Date

Account Titles and Explanation

Debit

Credit

choose a transaction date

enter an account title to record sales

enter a debit amount

enter a credit amount

enter an account title to record sales

enter a debit amount

enter a credit amount

enter an account title to record sales

enter a debit amount

enter a credit amount

enter an account title to record sales

enter a debit amount

enter a credit amount

(To record sales)

enter an account title to record cost of goods sold

enter a debit amount

enter a credit amount

enter an account title to record cost of goods sold

enter a debit amount

enter a credit amount

(To record cost of goods sold)

choose a transaction date

enter an account title

(c)

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

Date	Account Titles and Explanation	Debit	Credit
choose a transaction date


enter an account title to record sales	enter a debit amount	enter a credit amount
enter an account title to record sales	enter a debit amount	enter a credit amount
enter an account title to record sales	enter a debit amount	enter a credit amount
(To record sales)
enter an account title to record cost of goods sold	enter a debit amount	enter a credit amount
enter an account title to record cost of goods sold	enter a debit amount	enter a credit amount
(To record cost of goods sold)

	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount

Part a is already solved. Only need B and C answered!

A. Account Titles and Explanation debit credit

cash 48500

Sales Rev 23164.18

Unearned Serv-Internet 25335.82

(to record sales)

Cost of Goods Sold 16500

inventory 16500

(to record cost of goods sold)

Unearned serv-Internet 8445.27

service revenue 8445.27

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1.		Oriole 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 $485. The standalone selling price of the tablet is $256 (the cost to Oriole Company is $165). Oriole Company sells the Internet access service independently for an upfront payment of $280. On January 2, 2020, Oriole Company signed 100 contracts, receiving a total of $48,500 in cash.
2.		Oriole 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 $578. Oriole Company provides the 3-year tablet service plan as a separate product with a standalone selling price of $155. Oriole Company signed 200 contracts for Oriole Bundle B on July 1, 2020, receiving a total of $115,600 in cash.