Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Bonita Company sells tablet PCs combined with Internet service which permits the tablet to connect to the Internet anywhere and set up a Wi-Fi hotspot.
Bonita Company sells tablet PCs combined with Internet service which permits the tablet to connect to the Internet anywhere and set up a Wi-Fi hotspot. It offers two bundles with the following terms. 1. Bonita Bundle A sells a tablet with 3 years of Internet service. The price for the tablet and a 3-year Internet connection service contract is $516. The standalone selling price of the tablet is $267 (the cost to Bonita company is $175) Bonita Company sells the Internet access service independently for an upfront payment of $299, On January 2 2020. Bonita Company signed 110 contracts, receiving a total of $56,760 in cash 2. Bonita Bundle B includes the tablet and Internet service plus a service plan for the tablet Pd (for any repairs or upgrades to the tablet or the Internet connections) during the 3-year contract period. That product bundle sells for $619. Bonita Company provides the 3-year tablet service plan as a separate product with a standalone selling price of $164. Bonita Company signed 210 contracts for Bonita Bundle Bon July 1, 2020. receiving a total of $129.990 in cash. Prepare any journal entries to record the revenue arrangement for Bonita Bundle A on January 2, 2020 and December 31, 2020. (Credit account tities are automatically indented when the amount is entered. Do not indent manuallyIf no entry is required, select "No entry for the account tities and enter O for the amounts. Round answers to decimal places, eg 5.125.) Date Account Titles and Explanation Debit Credit Jan 2.2020 Cash Unearned Sales Revenue 2 Sales Revenue (To record sales) Cost of Goods Sold Inventory (To record cost of goods sold) Jan2 2020 Unearned Service Revenue - Internet Service Revenue Prepare any journal entries to record the revenue arrangement for Bonita Bundle B on July 1, 2020, and December 31, 2020, (Credit account titles are automatically indented when the amount is entered Da notindent manually no entry is required, select "No entry for the account titles and entero for the amounts Round answers to O decimal places es $ 125 Date Account Titles and Explanation Debit Crec Jul 1 2020 Cash Unearned Service Revenue - Internet Unearned Service Revenue - Maintenance Sales Revenue (To record sales) Cost of Goods Sold Inventory (To record cost of goods sold) Dec 31, 2020 Unearned Service Revenue Internet Unearned Service Revenue - Maintenance Service Revenue Repeat the requirements for part (a), assuming that Bonita Company has no reliable data with which to estimate the standalone selling price for the Internet service. (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 entero for the amounts. Round answers to O decimal places, eg. 5.125.) Date Account Titles and Explanation Debit Credit Jan. 2. 2020 Cash Unearned Service Revenue - Internet Sales Revenue (To record sales) Cost of Goods Sold Inventory (To record cost of goods sold) Jan.2.2020 V Unearned Service Revenue - Internet Service Revenue
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started