YellowCard Property Managers operates upscale student apartment buildings. On May 1, 2020, Cheyenne signs a contract withYellowCard for 320 appliance bundles to be delivered and installed in one of its new buildings. YellowCard pays 20% cash atcontract signing and will pay the balance upon installation no later than August 1, 2020. Prepare journal entries for Cheyenne on(1) May 1, 2020, and (2) August 1, 2020, when all appliances are installed. (Credit account titles are automatically indented when theamount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)No. Date ACcount Titles and ExplanationDebitCreditMay(1) 1,Cash117,1202020Unearned Sales Revenue117,120Aug.(2) 1,Unearned Sales Revenue117,1202020Cash468,480Sales Revenue585600(To record sales)Cost of Goods Sold297600Inventory297600 Refer to the arrangement in part (b). It would help YellowCard secure lease agreements with students if the installation of theappliance bundles can be completed by July 1, 2020. YellowCard offers a 10% bonus payment if Cheyenne can completeinstallation by July 1, 2020. Cheyenne estimates its chances of meeting the bonus deadline to be 90%, based on a number of priorcontracts of similar scale. Repeat the requirement for part (b), given this bonus provision. Assume installation is completed by July1, 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.)DateAccount Titles and ExplanationDebitCreditMay 1,2020Jul. 1,2020(To record sales)(To record cost of goods sold)

Journal entry is a process of recording and classifying business transactions into books of accounts…

Refer to the arrangement in part (b). It would help YellowCard secure lease agreements with students if the installation of the appliance bundles can be completed by July 1, 2020. YellowCard offers a 10% bonus payment if Cheyenne can complete installation by July 1, 2020. Cheyenne estimates its chances of meeting the bonus deadline to be 90%, based on a number of prior contracts of similar scale. Repeat the requirement for part (b), given this bonus provision. Assume installation is completed by July 1, 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.) Date Account Titles and Explanation Debit Credit May 1, 2020 Jul. 1, 2020 (To record sales) (To record cost of goods sold)

Refer to the arrangement in part (b). It would help YellowCard secure lease agreements with students if the installation of the appliance bundles can be completed by July 1, 2020. YellowCard offers a 10% bonus payment if Cheyenne can complete installation by July 1, 2020. Cheyenne estimates its chances of meeting the bonus deadline to be 90%, based on a number of prior contracts of similar scale. Repeat the requirement for part (b), given this bonus provision. Assume installation is completed by July 1, 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.) Date Account Titles and Explanation Debit Credit May 1, 2020 Jul. 1, 2020 (To record sales) (To record cost of goods sold)

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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