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Biackmon Comgany provides locator services to the city transportation departments. Blackmon's service imolves instaling a dedicated harbware transmitter in each city bus. Thas transmitier provides

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Biackmon Comgany provides locator services to the city transportation departments. Blackmon's service imolves instaling a dedicated harbware transmitter in each city bus. Thas transmitier provides real-time information to a central logistics censer that provides a manager with detailed information as to bus location, speed, current weather, and lraiffic patterns. The manager can then reroune buses to improve effeiency of cperations and inciease customer satisfaction. Customers generally sign two separase contracte: one contract govems the saie of the hardiave devices, whille the second governs the provision of the locator services. On January 1, 2019, a customer purchased Blackjmon's service by signing a contract for 100 devices for 3480,000 , the normal solling price. in addition, the customer signed a separate: 12-morth service contract for 52,000 per month (t.20 per month per unit, which is the standard celting price for the service). This amount is due on a monthly tasis, ard the cuetomer pays for Janusry servioe on Jaruary 31, 2019. The hardware devise can only be used wath Blackmon's services and there are currenty no other competions making devices inat work Whit tive Blasknon servoe. The cuslomer rray cancel at any time; however, the amount paid for the devece is nonfetundable. The ouslomer is given the right to renew the aervice contract ut the exieting rate each Decembec, and the average life of a cusiomer contract is 5 years. The customvr takes delivery of the device on Jancary 1 , 2019 , and begins the iDeavor semoe on that date. Required: 1. Identify the contract(s) for accounting purposes. 2. How many performance obligations exist? When will the performance obligation(s) be satisfied? 3. Prepare Blacimon's journal entries for January 2019. 4. Assume that other competitors sell a similar locator service comparable to Blackmon's. Would this fact change your provious answors? 3. Prepare the necessary entries to record the sale on January 1 and the related entry for January on January 31. General Joumal Instructions Question not attempted. 4. Prepare the necessary entries to record the sale on January 1 and the related entry for January on January 31 assuming other compotitors sell a similar focator service. General Joumal Question not attempted

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