On April 7, 2020, Champion Systems signed a contract to develop and install a virtual private network (VPN) for Loren Wilder Stores.

The transaction price, including installation, is $620,000. The VPN consists of four components: regional offices, corporate, retail stores, and remote users (for example, buyers). Each component is fully functional at the point of delivery. Each of the four components of the total network is correctly classified as a performance obligation, and each has standalone fair values as follows:

	Standalone
VPN Component	Sales Value
Regional offices	$110,500
Corporate office	286,000
Retail stores	136,500
Remote users	117,000
Total	$650,000

Champion collects the contract price in advance. Champion completed the regional office and remote user components on December 31, 2020.

Begin by completing the table to allocate the contract price to each separate performance obligation. (Enter the percentages to two decimal places, X.XX%. Round your answers to the nearest whole dollar.)

	Standalone	Relative		Contract	Revenue to be
VPN Component	Sales Value	Fair Value		Price	Recognized
Regional offices	$110,500	??.??	%	????.??	????.??
Corporate office	286,000	??.??	%	????.??	????.??
Retail stores	136,500	??.??	%	????.??	????.??
Remote users	117,000	??.??	%	????.??	????.??
Total	$650,000	??.??	%		????.??

Prepare the journal entry to record the contract. (Record debits first, then credits. Exclude explanations from journal entries.)

Account	April 7, 2020

Prepare the journal entry to record any revenue to be recognized during the current period. (Record debits first, then credits. Exclude explanations from journal entries.)

Account	December 31, 2020