17-5

1 Firty dresses were civic C journal entry to record revenue. modified to sell, once the original 500 dresses are delivered, an additional Tou $, which is the stand-alone selling price on October 1, 2019. Assume the dresses are delivered evenly in November and December 2019. Prepare the journal entries to record the contract modification 175 Determine the Transaction Price On January 1, 2019. Loud Company enters into a 2-year contract with a cus 175 tomer for an unlimited talk and 5 GB data wireless plan for $65 per month. The contract includes a smartphone for which the customer pays $299. Loud also sells the smartphone and monthly service plan separately, charging $649 for the smartphone and $65 for the monthly service for the unlimited talk and 5 GB data wireless plan. SHOW Required: NE HOW 1. Calculate the transaction price for the smartphone and unlimited talk and 5 GB data wireless plan assuming that Loud allocates consideration based on stand-alone prices. 2. Record the initial journal entry for Loud Company's sale of a 2-year contract on January 1, 2019, and the monthly journal entry. E17.6 Contract Modification Assume the same facts as in E17-5. On July 1, 2019, the customer realizes that she needs L o uder to the unlimited talk and 2 GB data plan for the remaining term of