Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

-/1 Question 4 of 12 View Policies Current Attempt in Progress Windsor Company manufactures equipment. Windsor's products range from simple automated machinery to complex systems

image text in transcribed
image text in transcribed
image text in transcribed
-/1 Question 4 of 12 View Policies Current Attempt in Progress Windsor Company manufactures equipment. Windsor's products range from simple automated machinery to complex systems containing numerous components. Unit selling prices range from $200,000 to $1,500,000 and are quoted inclusive of installation. The installation process does not involve changes to the features of the equipment and does not require proprietary information about the equipment in order for the installed equipment to perform to specifications. Windsor has the following arrangement with Winkerbean Inc Winkerbean purchases equipment from Windsor for a price of $950,000 and contracts with Windhor to install the equipment. Windsor charges the same price for the equipment irrespective of whether it does the installation or not. Using market data, Windsor determines installation service is estimated to have a standalone selling price of $52.000. The cost of the equipment is $660.000 Winkerbean is obligated to pay Windsor the $950,000 upon the delivery and installation of the equipment, Windsor delivers the equipment on June 1.2020. and completes the installation of the equipment on September 30, 2020. The equipment has a useful life of 10 years. Assume that the equipment and the installation are two distinct performance obligations which should be accounted for separately, How should the transaction price of $950,000 be allocated among the service obligations? (Do not round intermediate calculations. Round final answers to decimal places) Equipment $ Installation e Textbook and Media List of Accounts Prepare the journal entries for Windsor for this revenue arrangement on June 1, 2020 and September 30, 2020, assuming Windsor receives payment when installation is completed. (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 for the amounts) Date Account Titles and Explanation Debit Credit (To record sales) ole

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Essential Handbook Of Internal Auditing

Authors: K. H. Spencer Pickett

1st Edition

0470013168, 978-0470013168

More Books

Students also viewed these Accounting questions