On January 1, 2017, Loud Company enters into a 2year contract with a customer for an unlimited talk and 5GB data wireless plan for $65 per month. The contract includes a smartphone for which the customer pays $299. Loud also sells the smartphone and monthly service plan separately, charging $649 for the smartphone and $65 for the monthly service for the unlimited talk and 5 GB data wireless plan.

Required:

1. Calculate the transaction price for the smartphone and unlimited talk and 5GB wireless plan assuming that Loud allocates consideration based on stand alone prices.

2. Record the initial journal entry for Loud company's sale of a 2 year contract on January 1, 2017, and the monthly journal entry.

This question was presented previously but the 2 required question were not answered. Please provide the answers for the REQIRED QUESTIONS. Thank you