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The following information pertains to the customer contract: Contract price 238,149 Fair value of elevator installation service 4,763 23,815 142,889 Downpayment made by customer at time of contract signing Cost of the elevator to Humphreys Required: 1. Determine the appropriate allocation of the selling price to the different performance obligations. Round any calculations to 2 decimal places. 2. Prepare any required journal entries on April 2, April 15, and May 31. Assume that the customer pays for the elevator on May 31.

The following information pertains to the customer contract: Contract price 238,149 Fair value of elevator installation service 4,763 23,815 142,889 Downpayment made by customer at time of contract signing Cost of the elevator to Humphreys Required: 1. Determine the appropriate allocation of the selling price to the different performance obligations. Round any calculations to 2 decimal places. 2. Prepare any required journal entries on April 2, April 15, and May 31. Assume that the customer pays for the elevator on May 31.

FINANCIAL ACCOUNTING
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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The following information pertains to the customer contract: Contract price 238,149 Fair value of elevator installation service 4,763 23,815 142,889 Downpayment made by customer at time of contract signing Cost of the elevator to Humphreys Required: 1. Determine the appropriate allocation of the selling price to the different performance obligations. Round any calculations to 2 decimal places. 2. Prepare any required journal entries on April 2, April 15, and May 31. Assume that the customer pays for the elevator on May 31.
Transcribed Image Text:The following information pertains to the customer contract: Contract price 238,149 Fair value of elevator installation service 4,763 23,815 142,889 Downpayment made by customer at time of contract signing Cost of the elevator to Humphreys Required: 1. Determine the appropriate allocation of the selling price to the different performance obligations. Round any calculations to 2 decimal places. 2. Prepare any required journal entries on April 2, April 15, and May 31. Assume that the customer pays for the elevator on May 31.
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