Sandhill Windows manufactures and sells custom storm windows for three-season porches. Sandhill also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Sandhill enters into the following contract on July 1, 2025, with a local homeowner. The customer purchases windows for a price of $2,360 and chooses Sandhill to do the installation. Sandhill charges the same price for the windows irrespective of whether it does the installation or not. The installation service is estimated to have a standalone selling price of $534. The customer pays Sandhill $2,136 (which equals the standalone selling price of the windows, which have a cost of $1,110) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2025, Sandhill completes installation on October 15, 2025, and the customer pays the balance due.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Sandhill Windows manufactures and sells custom storm windows for three-season porches. Sandhill also provides installation service
for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors.
Sandhill enters into the following contract on July 1, 2025, with a local homeowner. The customer purchases windows for a price of
$2,360 and chooses Sandhill to do the installation. Sandhill charges the same price for the windows irrespective of whether it does the
installation or not. The installation service is estimated to have a standalone selling price of $534. The customer pays Sandhill $2,136
(which equals the standalone selling price of the windows, which have a cost of $1,110) upon delivery and the remaining balance upon
installation of the windows. The windows are delivered on September 1, 2025, Sandhill completes installation on October 15, 2025,
and the customer pays the balance due.
Prepare the journal entries for Sandhill in 2025. (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. Round answer to O decimal places, e.g.
5,125. List all debit entries before credit entries. Record journal entries in the order presented in the problem. Do not round intermediate
calculations.)
Date
ly 1, 2025
p. 1, 2025
p. 1, 2025
ct. 15, 2025
V
Account Titles and Explanation
No Entry
No Entry
Cash
Accounts Receivable
Unearned Service Revenue
Sales Revenue
(To record sales)
Cost of Goods Sold
Inventory
(To record cost of goods sold)
Cash
Accounts Receivable
Unearned Service Revenue
Service Revenue
Debit
0
2136
304
1100
[DO] AO DOD
0000 00
304
Credit
534
0
1,826
1100
Transcribed Image Text:Sandhill Windows manufactures and sells custom storm windows for three-season porches. Sandhill also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Sandhill enters into the following contract on July 1, 2025, with a local homeowner. The customer purchases windows for a price of $2,360 and chooses Sandhill to do the installation. Sandhill charges the same price for the windows irrespective of whether it does the installation or not. The installation service is estimated to have a standalone selling price of $534. The customer pays Sandhill $2,136 (which equals the standalone selling price of the windows, which have a cost of $1,110) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2025, Sandhill completes installation on October 15, 2025, and the customer pays the balance due. Prepare the journal entries for Sandhill in 2025. (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. Round answer to O decimal places, e.g. 5,125. List all debit entries before credit entries. Record journal entries in the order presented in the problem. Do not round intermediate calculations.) Date ly 1, 2025 p. 1, 2025 p. 1, 2025 ct. 15, 2025 V Account Titles and Explanation No Entry No Entry Cash Accounts Receivable Unearned Service Revenue Sales Revenue (To record sales) Cost of Goods Sold Inventory (To record cost of goods sold) Cash Accounts Receivable Unearned Service Revenue Service Revenue Debit 0 2136 304 1100 [DO] AO DOD 0000 00 304 Credit 534 0 1,826 1100
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