Exercise 6-16 Pharoah Company manufactures equipment. Pharoah's products range from simple automated machinery to complex systems containing numerous components. Unit selling prices range from $210,000 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. Pharoah has the following arrangement with Winkerbean Inc. Winkerbean purchases equipment from Pharoah on May 2, 2020, for a price of $988,000 and contracts with Pharoah to install the equipment. Pharoah charges the same price for the equipment irrespective of whether it does the installation or not. Using market data, Pharoah 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 Pharoah the $936,000 upon delivery of the equipment and the balance on the completion of the installation Pharoah 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. Allocate the transaction price of $988,000 among the performance obligations of the contract. Assume Pharoah follows IFRS. (Round percentage allocations to 2 decimal places, e.g. 12.25 and final answers to 0 decimal places, e.g. 5,275.) Delivery equipments 938600 Installation 49400 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Prepare any journal entries for Pharoah 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 o for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit May 2, 2020 1 Accounts Receivable 988,000 Sales Revenue 988,000 June 1, 2020 Cash 936,000 Service Revenue 936,000 (To record sales) June 1, 2020 Cost of Goods Sold 800,000 800,000 Inventory (To record cost of goods sold) September 30, 2020 Cash 52000 Activate Windows Go to Settings to activate Windows