Floral Design Co. is a chain of florists located in the Greater Halifax area. Floral Design sells made-to-order bouquets, in-store floral arrangements, and provides design services for events such as weddings and corporate events. They also provide arrangements for a variety of upscale hotels. In November 20X4, Floral Design Co. made a deal with one of its regular customers, Juniper Hotel and Banquet Centre, as follows:

. Floral Design Co. will provide their regular monthly arrangements for the month of December and in exchange, Juniper will allow Floral Design to rent a meeting room. The room will be used to host Floral Design’s annual employee appreciation event. 

. Floral Design normally charges Juniper $1,750 per month to provide arrangements. 

. Juniper’s stated hotel event rate for the space provided is $1,550. 

. The cost of the flowers and materials provided to Juniper during December under the contract totalled $925. 

. Floral Design Co. follows ASPE.

Required:

Prepare the journal entries for Floral Design Co. to record the above transaction in December.