Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Coronado Company sells tablet PCs combined with Internet service, which permits the tablet to connect to the Internet anywhere and set up a Wi-Fi hot
Coronado Company sells tablet PCs combined with Internet service, which permits the tablet to connect to the Internet anywhere and set up a Wi-Fi hot spot. It offers two bundles with the following terms. 1. Coronado 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 $491. The standalone selling price of the tablet is $246 (the cost to Coronado Company is $166). Coronado Company sells the Internet access service independently for an upfront payment of $291. On January 2, 2020, Coronado Company signed 110 contracts, receiving a total of $54,010 in cash. Coronado Bundle B includes the tablet and Internet service plus a service plan for the tablet PC (for any repairs or upgrades to the tablet or the Internet connections) during the 3-year contract period. That product bundle sells for $589. Coronado Company provides the 3-year tablet service plan as a separate product with a standalone selling price of $151. Coronado Company signed 210 contracts for Coronado Bundle B on July 1, 2020, receiving a total of $123,690 in cash. 2. (b) Prepare any journal entries to record the revenue arrangement for Coronado Bundle B on July 1, 2020, and December 31, 2020. (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. Round answers to decimal places, eg. 5,125.) Date Account Titles and Explanation Debit Cre Jul. 1. 2020 (To record sales) (To record cost of goods sold) e Textbook and Media List of Accounts Save for Later Last saved 1 second ago. Attempts: 0 of 3 used Submit Answer Saved work will be auto-submitted on the due date. (c) Your answer is partially correct. Repeat the requirements for part (a), assuming that Coronado 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 enter for the amounts. Round answers to O decimal places, eg. 5,125.) Date Account Titles and Explanation Debit Credit 120 Cash 53900 Sales Revenue 26950 26950 Unearned Sales Revenue (To record sales) Cost of Goods Sold 18260 18260 Inventory (To record cost of goods sold) Unearned Service Revenue - Internet 2020 8983 Service Revenue 8983 e Textbook and Media List of Accounts Save for Later Attempts: 1 of 3 used Submit
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