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Crane Company manufactures equipment. Crane's products range from simple automated machinery to complex systems containing numerous components. Unit selling prices range from $250,000 to $1.510,000,

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Crane Company manufactures equipment. Crane's products range from simple automated machinery to complex systems containing numerous components. Unit selling prices range from $250,000 to $1.510,000, and are quoted inclusive of installation. 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. Winkerbean purchases equipment from Crane on May 2, 2020, for a price of $988,000 and contracts with Crane to install the equipment. Crane charges the same price for the equipment irrespective of whether it does the installation or not. Using market data, Crane determines that the installation service is estimated to have a fair value of $52.000. The cost of the equipment is $800,000 Winkerbean is obligated to pay Crane the $936,000 upon delivery of the equipment and the balance on the completion of the installation . Crane delivers the equipment on June 1, 2020, and completes the installation of the equipment on September 30, 2020. Assume that the equipment and the installation are two distinct performance obligations that should be accounted for separately Part 1 Your answer is correct Allocate the transaction price of $988,000 among the performance obligations of the contract. Assume Crane follows IFRS. (Round percentage allocations to 2 decimal places, es, 12.25 and final answers to decimal places, es 5,275.) Delivery equipment S 938600 Installation 49400 Prepare any journal entries for Crane on May 2, June 1, and September 30, 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. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Cost of Goods Sold 800000 Inventory June 1.2020 Accounts Receivable 988000 Sales Revenue Unearned Revenue (To record sales) May 2: 2020 Uneamed Revenue 49400 Service Revenue (To record cost of goods sold) September 30, 2020 Cash 52000 Unearned Revenue 49400 ILU Service Revenge

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