Question
In September 2020, Skysong Corp. commits to selling 158 of its iPhone-compatible docking stations to Better Buy Co. for $14,220 ($90 per product). The stations
In September 2020, Skysong Corp. commits to selling 158 of its iPhone-compatible docking stations to Better Buy Co. for $14,220 ($90 per product). The stations are delivered to Better Buy over the next 6 months. After 82 stations are delivered, the contract is modified and Skysong promises to deliver an additional 48 products for an additional $4,080 ($85 per station). All sales are cash on delivery.
Correct answer iconYour answer is correct.
Prepare the journal entry for Skysong for the sale of the first 82 stations. The cost of each station is $56. (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 0 for the amounts.)
Account Titles and Explanation | Debit | Credit |
---|---|---|
enter an account title to record sales | enter a debit amount | enter a credit amount |
enter an account title to record sales | enter a debit amount | enter a credit amount |
(To record sales) | ||
enter an account title to record cost of goods sold | enter a debit amount | enter a credit amount |
enter an account title to record cost of goods sold | enter a debit amount | enter a credit amount |
(To record cost of goods sold) |
Correct answer iconYour answer is correct.
Prepare the journal entry for the sale of 10 more stations after the contract modification, assuming that the price for the additional stations reflects the standalone selling price at the time of the contract modification. In addition, the additional stations are distinct from the original products as Skysong regularly sells the products separately. (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 0 for the amounts.)
Account Titles and Explanation | Debit | Credit |
---|---|---|
enter an account title to record sales | enter a debit amount | enter a credit amount |
enter an account title to record sales | enter a debit amount | enter a credit amount |
(To record sales) | ||
enter an account title to record cost of goods sold | enter a debit amount | enter a credit amount |
enter an account title to record cost of goods sold | enter a debit amount | enter a credit amount |
Prepare the journal entry for the sale of 10 more stations (as in (b)), assuming that the pricing for the additional products does not reflect the standalone selling price of the additional products and the prospective method is used. (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 0 for the amounts. Round answers to 2 decimal places, e.g. 1,525.25.)
Account Titles and Explanation | Debit | Credit |
---|---|---|
enter an account title to record sales | enter a debit amount | enter a credit amount |
enter an account title to record sales | enter a debit amount | enter a credit amount |
(To record sales) | ||
enter an account title to record cost of goods sold | enter a debit amount | enter a credit amount |
enter an account title to record cost of goods sold | enter a debit amount | enter a credit amount |
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