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1. Bill sells equipment to Bob the Builder that costs $400,000 for $800,000 on January 1. The sales price includes an installation fee; the
1. Bill sells equipment to Bob the Builder that costs $400,000 for $800,000 on January 1". The sales price includes an installation fee; the fair value of the installation service is $30,000. The fair value of the goods is $650,000. The installation is considered a separate performance obligation and is expected to take 6 months to complete. Installation is completed on June 17th of that year, Cash is paid at date of sale. a. Prepare the journal entries to record the sale on January 1st b. How much revenue should Bill recognize after completing the installation? Write the JE. ACC 3302
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Intermediate Accounting
Authors: kieso, weygandt and warfield.
14th Edition
9780470587232, 470587288, 470587237, 978-0470587287
