Sunland Windows manufactures and sells custom storm windows for porches. Sunland 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. Sunland enters into the following non-cancellable contract on July 1, 2023, with a local homeowner. The customer purchases windows for a price of $2,800 and chooses Sunland to do the installation. Sunland charges the same price for the windows regardless of whether it does the installation or not. The customer pays Sunland $2,304 (which equals the fair value of the windows, which have a cost of $1,400) on delivery and the remaining balance on installation of the windows. The windows are delivered on September 1, 2023, Sunland completes installation on October 15, 2023, and the customer pays the balance due.
Sunland Windows manufactures and sells custom storm windows for porches. Sunland 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. Sunland enters into the following non-cancellable contract on July 1, 2023, with a local homeowner. The customer purchases windows for a price of $2,800 and chooses Sunland to do the installation. Sunland charges the same price for the windows regardless of whether it does the installation or not. The customer pays Sunland $2,304 (which equals the fair value of the windows, which have a cost of $1,400) on delivery and the remaining balance on installation of the windows. The windows are delivered on September 1, 2023, Sunland completes installation on October 15, 2023, and the customer pays the balance due.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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accounting - follow the guideline
Transcribed Image Text:Sunland Windows manufactures and sells custom storm windows for porches. Sunland 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.
Sunland enters into the following non-cancellable contract on July 1, 2023, with a local homeowner. The customer purchases windows
for a price of $2,800 and chooses Sunland to do the installation. Sunland charges the same price for the windows regardless of
whether it does the installation or not. The customer pays Sunland $2,304 (which equals the fair value of the windows, which have a
cost of $1,400) on delivery and the remaining balance on installation of the windows. The windows are delivered on September 1,
2023, Sunland completes installation on October 15, 2023, and the customer pays the balance due.
Transcribed Image Text:Prepare the journal entries for Sunland on July 1, September 1, and October 15, 2023 given the uncertainty of finding skilled
labour, Sunland is unable to develop a reliable estimate for the fair value of the installation. (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. Record journal entries in the order presented in the problem. List all debit entries before credit entries.)
Date
Account Titles and Explanation
(To record sales)
(To record cost of goods sold)
Debit
1.10
Cr
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