Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting 2014 FASB Update

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

15th edition

978-1118938782, 111893878X, 978-1118985311, 1118985311, 978-1118562185, 1118562186, 978-1118147290

More Books

Students also viewed these Accounting questions