1. On November 20, 2017, Manitoba Electronics agreed to manufacture and supply 750 electronic control units used by Wausau Heating Systems in large commercial and industrial installments. On that date, Wausau deposited $250 per unit upon signing the three-year purchase agreement, which set the selling price of each control unit at $1,000. Manitoba's inventory cost is $225 per unit. No units were delivered during 2017. The first 200 units will be delivered in 2018, 300 units will be delivered during 2019, and the remaining units will be delivered during 2020. Assume Manitoba uses a perpetual inventory system.

Required:

1. QuestionConceptual ConnectionPrepare the entry by Manitoba to record receipt of the deposit during 2017. How would the deposit be reported in the financial statements at the end of 2017?

Answer

Check Figure:Reported as current liability = $50,000.

2.QuestionConceptual ConnectionPrepare the entry by Manitoba to record the delivery of 200 units during 2018. How would the deposit be reported in the financial statements at the end of 2018? Wausau pays in cash upon delivery for the excess of the selling price over the applicable deposit.

Answer

Check Figure:Debit to Cash = $150,000. Reported as noncurrent liability = $62,500.

3.QuestionPrepare the entry by Manitoba to record the delivery of 300 units during 2019.

Answer

Check Figure:Debit to Unearned Sales Revenue = $75,000.

Could you show me the step and explain how to get those answers)