Contract: It is a voluntary arrangement that is enforced by the law between two or more parties as a legal binding agreement. Performance obligation: A promise to transfer goods or services is defined as performance obligation. To prepare: To prepare the journal entry . Given information: All the information related to M Company is provided in the question document.

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Chapter 18, Problem 19BE

To determine

Contract: It is a voluntary arrangement that is enforced by the law between two or more parties as a legal binding agreement.

Performance obligation: A promise to transfer goods or services is defined as performance obligation.

To prepare: To prepare the journal entry.

Given information: All the information related to M Company is provided in the question document.

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