Please help me A company began to sell training contracts with the sale of their software system in one bundle pricewhereby the customer pays a monthly fee for 36 months. The monthly fee is due at the beginning ofeach month. During that time, the company provides any training on the software as required by thecustomer. It is expected that training costs incurred will be incurred evenly over time. Any training costsincurred to date have been charged to the Purchases of Merchandise account. Assume that the effectsof discounting are not material (i.e. you do not have to discount the cash flows).The company sold 2 of these contracts during 2020 as follows:Contract 1Contract 2Date of contractApril 1, 2020August 1, 2020Stand-alone selling price of equipmentStand-alone selling price of trainingMonthly fee charged to the customer$145,000$18,000$4,000$265,000$27,000$7,250The bookkeeper recorded the monthly revenues in the revenue account.Required:Prepare the adjusting journal entry required at December 31, 2020.

Adjusting entries refers to a set of journal entries recorded at the end of the accounting period to…

whereby the customer pays a monthly fee for 36 months. The monthly fee is due at the be each month. During that time, the company provides any training on the software as requi customer. It is expected that training costs incurred will be incurred evenly over time. Any t incurred to date have been charged to the Purchases of Merchandise account. Assume that of discounting are not material (i.e. you do not have to discount the cash flows). The company sold 2 of these contracts during 2020 as follows: Contract 1 Contract 2 Date of contract April 1, 2020 August 1, 2020 Stand-alone selling price of equipment Stand-alone selling price of training Monthly fee charged to the customer $145,000 $18,000 $4,000 $265,000 $27,000 $7.250

whereby the customer pays a monthly fee for 36 months. The monthly fee is due at the be each month. During that time, the company provides any training on the software as requi customer. It is expected that training costs incurred will be incurred evenly over time. Any t incurred to date have been charged to the Purchases of Merchandise account. Assume that of discounting are not material (i.e. you do not have to discount the cash flows). The company sold 2 of these contracts during 2020 as follows: Contract 1 Contract 2 Date of contract April 1, 2020 August 1, 2020 Stand-alone selling price of equipment Stand-alone selling price of training Monthly fee charged to the customer $145,000 $18,000 $4,000 $265,000 $27,000 $7.250

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 7RE: VolleyElite runs a volleyball program consisting of camps, tournaments, and specialized coaching....

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