Part A

Equipment 1033400 & 1035328 are incorrect

Installation 46600 & 44672 are incorrect

Part B

partially correct. anything boxed in red is incorrect

Current Attempt in Progress Carla Company manufactures equipment. Carla's products range from simple automated machinery to complex systems containing numerous components. Unit selling prices range from $200,000 to $1,500,000 and are quoted inclusive of installation. The installation process does not involve changes to the features of the equipment and does not require proprietary information about the equipment in order for the installed equipment to perform to specifications. Carla has the following arrangement with Winkerbean Inc Winkerbean purchases equipment from Carla for a price of $1,080,000 and contracts with Carla to install the equipment. Carla charges the same price for the equipment irrespective of whether it does the installation or not. Using market data Carla determines installation service is estimated to have a standalone selling price of $46,600. The cost of the equipment is $651,000 Winkerbean is obligated to pay Carla the $1,080,000 upon the delivery and installation of the equipment. Carla delivers the equipment on June 1, 2020, and completes the Installation of the equipment on September 30, 2020. The equipment has a useful life of 10 years. Assume that the equipment and the installation are two distinct performance obligations which should be accounted for separately. Assuming Carla does not have market data with which to determine the standalone selling price of the installation services. As a result, an expected cost plus margin approach is used. The cost of installation is $34000. Carla prices these services with a 30% margin relative to cost. X Your answer is incorrect How should the transaction price of $1.080.000 be allocated among the service obligations? (Do not round intermediate calculations Stallation is $34,000; Carla prices these services with a 30% margin relati cost. x Your answer is incorrect. How should the transaction price of $1,080,000 be allocated among the service obligations? (Do not round intermediate calculations. Round final answers to 0 decimal places.) Equipment $ 756000 Installation 5 39100 Assistance Used e Textbook and Media List of Accounts Attempts: unlimited Submit Answer Save for Later - Your answer is partially correct. Prepare the journal entries for Carla for this revenue arrangement on June 1, 2020, assuming Carla receives payment when installation is completed. (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 for the amounts.) Account Titles and Explanation Credit Debit 1080000 Accounts Receivable Sales Revenue 1035328 Unearned Service Revenue 44672 (To record sales) Cost of Goods Sold 651000 Inventory (To record cost of goods sold) Unearned Service Revenue Service Revenue (To record service revenue) Cash 1030000 10000 Accounts Receivable (To record payment received)