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Wildhorse Windows manufactures and sells custom storm w installation service for the windows. The installation process can be performed by other vendors. Wildhorse enters into th homeowner. The customer purchases windows for a price of Wildhorse charges the same price for the windows irrespect

Wildhorse Windows manufactures and sells custom storm w installation service for the windows. The installation process can be performed by other vendors. Wildhorse enters into th homeowner. The customer purchases windows for a price of Wildhorse charges the same price for the windows irrespect

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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Wildhorse Windows manufactures and sells custom storm windows for three-season porches. Wildhorse 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. Wildhorse 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 Wildhorse to do the installation. Wildhorse charges the same price for the windows irrespective of whether it does the installation or not. The customer pays Wildhorse $1,722 (which equals the standalone selling price of the windows, which have a cost of $1,100) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2025, Wildhorse completes installation on October 15, 2025, and the customer pays the balance due. (a) Wildhorse estimates the standalone selling price of the installation based on an estimated cost of $615 plus a margin of 20% on cost. Prepare the journal entries for Wildhorse 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 0 for the amounts. Round answer to 0 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.)
Transcribed Image Text:Wildhorse Windows manufactures and sells custom storm windows for three-season porches. Wildhorse 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. Wildhorse 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 Wildhorse to do the installation. Wildhorse charges the same price for the windows irrespective of whether it does the installation or not. The customer pays Wildhorse $1,722 (which equals the standalone selling price of the windows, which have a cost of $1,100) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2025, Wildhorse completes installation on October 15, 2025, and the customer pays the balance due. (a) Wildhorse estimates the standalone selling price of the installation based on an estimated cost of $615 plus a margin of 20% on cost. Prepare the journal entries for Wildhorse 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 0 for the amounts. Round answer to 0 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.)
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