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gament 1 Cho courses/45581/assignments/5037682 Sheridan Manufacturing Inc shipped finished goods inventory with a total cost of $55,400 to FFA Retailing Ltd. on May 1. The

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gament 1 Cho courses/45581/assignments/5037682 Sheridan Manufacturing Inc shipped finished goods inventory with a total cost of $55,400 to FFA Retailing Ltd. on May 1. The agreement between the two companies was that FFA was to sell the product on consignment for Sheridan Manufacturing. Sheridan incurred $4,900 in shipping costs in order to ship the merchandise. FFA paid a local newspaper $2,600 for advertising costs (which Sheridan promised to reimburse) At September 30, the end of the accounting year for both companies, FFA had sold 75% of the merchandise for total sales of $65,100. FFA notified Sheridan of the sales, retained a 20% commission, and remitted the cash due to Sheridan. (a) Prepare the journal entries required by the above transactions on the books of Sheridan Manufacturing (Round answers to decimal places, es 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 for the amounts.) No. Account Titles and Explanation Debit Credit 1 (To record shipped merchandise.) 2. (To record shipping costs) 35 PM 3 O DELL Pem vert F12 FRO F7 P + A ? OVA V2 $ 7 8 2 5 A 6 7 (A)" Il ment 1 Ch 6 arses/45581/assignments/5037682 Carla Vista Company manufactures equipment. Carla Vista's products range from simple automated machinery to complex systems containing numerous components. Unit selling prices range from $235,000 to $1,620,000, and are quoted inclusive of installation. The installation process does not involve changes to the features of the equipment to perform to specifications. Carla Vista has the following arrangement with Winkerbean Inc. Winkerbean purchases equipment from Carla Vista on May 2, 2020, for a price of $1,121,000 and contracts with Carla Vista to install the equipment. Carla Vista charges the same price for the equipment irrespective of whether it does the installation or not. Using market data, Carla Vista determines that the installation service is estimated to have a fair value of $59,000. The cost of the equipment is $600,000 Winkerbean is obligated to pay Carla Vista the $1,062,000 upon delivery of the equipment and the balance on the completion of the installation Carta Vista 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. (a) Allocate the transaction price of $1.121.000 among the performance obligations of the contract. Assume Carla Vista follows IFRS. (Round percentage allocations to 2 decimal places, e.g. 12.25 and final answers to decimal places, e.8.5.275.) Delivery equipment $ 9:06 PM

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