On January 1, 2019, Fulton Inc. enters into a contract with Gibson to deliver goods. Gibson pays $100,000 at the time the contract is signed, at which time the goods are transferred and Fulton's performance obligation is complete. In addition, Gibson agrees to pay Fulton $100,000 on December 31, 2019, and December 31, 2020. If Fulton entered into a financing arrangement with Gibson it would charge an interest rate of 9%. Required: 1. Determine the transaction price for the contract with Gibson. 2. Prepare the journal entries to record Fulton's 2019 sales revenue and interest revenue. 3. Next Level What is the objective of adjusting the transaction price to reflect the time value of money? 1. Determine the transaction price for the contract with Gibson. Transaction price 2. Prepare the journal entries to record Fulton's sales revenue on January 1 and interest revenue on December 31 . 3. What is the objective of adjusting the transaction price to reflect the time value of money? The objective of reducing the transaction price for the time value of money is so that the seller will recognize at an amount that would have been recognized had the customer paid cash for the promised goods or services CHART OF ACCOUNTS Fulton Inc. General Ledger ASSETS 111 Cash 121 Accounts Receivable 131 Notes Receivable 132 Discount on Notes Receivable 141 Inventory 152 Prepaid Insurance 181 Equipment 198 Accumulated Depreciation LIABILITIES 211 Accounts Payable 231 Salaries Payable 250 Unearned Revenue 261 Income Taxes Payable REVENUE 411 Sales Revenue 431 Interest Income EXPENSES 500 Cost of Goods Sold 511 Insurance Expense 512 Utilities Expense 521 Salaries Expense 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 910 Income Tax Expense EQUITY 311 Common Stock 331 Retained Earnings