I need some help with the following Intermediate Accounting III problem. Please see all 3 parts in the attached file.

Thank you,

Katie

Sanchez Co. enters into a contract to sell Product A and Product B on January 2, 2014, for an upfront cash payment of $180,000. Product A will be delivered in 2 years (January 2, 2016) and Product B will be delivered in 5 years (January 2, 2019). Sanchez Co. allocates the $180,000 to Products A and B on a relative standalone selling price basis as follows. Standalone Selling Prices Product A Product B $ 48,000 144,000 $192,000 Percent Allocate d 25% 75% Allocated Amounts $ 45,000 135,000 $180,000 Sanchez Co. uses an interest rate of 6%, which is its incremental borrowing rate. (Hint: Given the (discounted) upfront payment, accretion of the contract liability will need to be recorded.) Prepare the journal entries necessary on January 2, 2014, and December 31, 2014. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit January 2, 2014 (To record upfront payment for sales of products A and B) December 31, 2014 (To record interest on the contract liability (Unearned Sales Revenue)) Prepare the journal entries necessary on December 31, 2015. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit December 31, 2015 (To record interest on the contract liability) Prepare the journal entries necessary on January 2, 2016. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation January 2, 2016 (To record revenue on transfer of product A) Debit Credit