Crane Company manufactures equipment. Crane's products range....

Exercise 6 - 10 The installation process does not involve changes to the features of the equipment to perform to Specifications . Crane has the following arrangement with Winkerbean Inc .` determines that the installation service is estimated to have a fair value of $60 , 000 . The cost of the equipment is $ 700 ,000 .` . Winkerbean is obligated to pay Crane the $ 1 , 250 , 000 upon delivery and installation of the equipment . Crane delivers the equipment and completes the installation of the equipment on September 30 , 2017 . The equipment has a useful life of 10 years . Assume that the equipment and the installation are two distinct performance obligations that should be* accounted for Separately . How should the transaction price of $ 1 , 250 , 000 be allocated among the service obligations ? ( Round intermediate calculations to 4 decimal places , e .g . 0. 1234 . Round Final answers to O decimal places , e .g. 5 , 275 . ) Equipment* Installation SHOW LIST OF ACCOUNTS LINK TO TEXTPrepare the journal entries for Crane for this revenue arrangement in 2017 , assuming Crane receives payment when installation is completed . ( Round final answers to O decimal places , e .g. 5 , 275 . 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 O for the amounts . ) Date Account Titles and Explanation Debit Credit June 1 , 2017 ( To record sales . ) June 1 , 2017\\ ( To record cost of goods sold ." September 30 , 2017ACCOUNTS Payable ACCOUNTS Receivable Advertising EXPENSE Allowance for Doubtful Accounts Cash Commission EXPENSE Commission REVENUE Compensation EXPENSE* Construction EXPENSES Contract Asset / Liability* Cost of Goods Sold Delivery EXPENSE Estimated Inventory Returns Finished Goods Inventory Interest EXPENSE Interest Income Interest Payable Interest Receivable Inventory Inventory on Consignment LOSE duE to Damaged Inventory Miscellaneous EXPENSE NO Entry Notes Receivable Office EXPENSE Refund Liability Rent REVENUE Returned Inventory REVENUE from Consignment Sales REVENUE from Long - Term Contracts Sales Discounts Sales Discounts ForfeitEd Sales Returns and Allowances SALES REVENUE SERVICE REVENUE Service REVENUE - Commissions SERVICE REVENUE - Installation Unearned REVENUE Unearned REVENUE - Installation Unearned Warranty REVENUE Utilities EXPENSE Warranty EXPENSE Warranty Liability Warranty REVENUE