for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.$)$

Date

June $1,2023$

Account Titles and Explanation

Cost of Goods Sold

Inventory

Cash

Sales Revenue

Unearned Revenue

$($To record sales$)$

Unearned Revenue

Service Revenue

$($To record cost of goods sold$)$

Debit

Credit

CreditSunland Company manufactures equipment. Sunland's products range from simple automated machinery to complex systems containing numerous components. Unit selling prices range from $$285,000$ to $$1,600,000,$ and

are quoted inclusive of installation. The installation process does not involve changes to the features of the equipment to perform to specifications. Sunland has the following arrangement with Novak Inc.

Novak purchases equipment from Sunland on May $2,2023,$ for a price of $$1,064,000$ and contracts with Sunland to install the equipment. Sunland charges the same price for the equipment irrespective of whether it

does the installation or not. Using market data, Sunland determines that the installation service is estimated to have a fair value of $$56,000.$ The cost of the equipment is $$500,000.$

Novak is obligated to pay Sunland the $$1,008,000$ on delivery of the equipment and the balance on the completion of the installation.

Sunland delivers the equipment on June $1,2023,$ and completes the installation of the equipment on September $30,2023.$ Assume that the equipment and the installation are two distinct performance obligations that should

be accounted for separately.