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Please help. Everything I enter remains incorrect. 1. Allocate Transaction Price, Upfront Fees Tablet Tailors sells tablet PCs combined with Internet service, which permits the
Please help. Everything I enter remains incorrect.
1. Allocate Transaction Price, Upfront Fees Tablet Tailors sells tablet PCs combined with Internet service, which permits the tablet to connect to the Internet anywhere and set up a Wi-Fi hot spot. It offers two bundles with the following terms. 1. Tablet Bundle A sells a tablet with 3 years of Internet service. The price for the tablet and a 3-year Internet connection service contract is $500. The standalone selling price of the tablet is $250 (the cost to Tablet Tailors is $175). Tablet Tailors sells the Internet access service independently for an upfront payment of $300. On January 2, 2020. Tablet Tailors signed 100 contracts, receiving total of $50,000 in cash, 2. Tablet Bundle B includes the tablet and Intemet service plus a service plan for the tablet PC (for any repairs or upgrades to the tablet or the Internet connections) during the 3-year contract period. That product bundle sells for $600. Tablet Tailors provides the 3-year tablet service plan as a separate product with a standalone selling price of S150. Tablet Tailors signed 200 contracts for Tablet Bundle B on July 1, 2020, receiving a total of $120,000 in cash Instructions: (a) Prepare any joumal entries to record the revenue arrangement for Tablet Bundle A on January 2, 2020, and December 31, 2020 (b)Prepare any journal entries to record the revenue arrangement for Tablet Bundle B on July 1,2020 and December 31, 2020, (c) Repeat the requirements for part (a), assuming that Tablet Tailors has no reliable data with which to estimate the stand-alone selling price for the Internet service. Note about journal entry format: Enter dcbits first: If more than one debit, list in descending order (highest amount first) Enter credits second: If more than one credit, list in descending order (highest amount first) *Use: the rounded whole numbers in your final calculations for the journal entries. *Points may be deducted for incorrect account names. Jan. 2 Debit Credit Account Name Account Name Account Narne (To record revenue and unearned revenue for Jan. 2 revenue agreement.) Jan. 2 Account Name Account Name (To record COGS Deo. 31 Unearned Service Revenue Service Revenue (To record revenue for internet service provided in 2020) Jul 1 Debit Credit Account Name Account Name Account Name Account Name (To record revenue and unearned revenue for Jul 1 revenue agreement) Jul 1 Account Name Account Name (To record COGS Deo. 31 Account Name Account Name Account Name (To record revenue for internet and maintenance services provided in 2020) Debit Credit Jan. 2 Cash Unearned Service Revenue (Internet) Unearned Service Revenue (Tablet) Standalone price per contract: Standalone Price Tablet Standalone Price Internet Total standalone price S (round to the Enter cacluation into nearest whole Allocation per contract: cells dollar) Tablet Internet "Total $ *Total should equal the sales revenue per contract GRADING Part (a) Cell Ref Correct/incorrect 015 INCORRECT 016 INCORRECT 615 INCORRECT H16 INCORRECT H17 INCORRECT G20 INCORRECT H21 INCORRECT G24 INCORRECT H25 INCORRECT Total for part (a) Points awarded 0.0 0 0 0.0 0.0 0.0 0.0 0.0 OD 0.0 0 (round to the nearest whole dollar) Standalone price per contract: Allocated to Tablet Allocated to Internet Allocated to Tablet Service Total estimated standalone S Enter cacluation into Allocation per contract: cells Tablet Internet Tablet Service Plan *Total $ *Total should equal the sales revenue per contract GRADING Part () Cell Ref Correct/Incorrect Points awarded 032 INCORRECT 0 0 033 INCORRECT 0.0 034 INCORRECT 0.0 G31 INCORRECT 0.0 H32 INCORRECT 0.0 H33 INCORRECT 0.0 H34 INCORRECT 0 0 G37 INCORRECT 0.0 H38 INCORRECT 0.0 G41 INCORRECT 0.0 G43 INCORRECT 0.0 H43 INCORRECT 0:0 Total for part (b) 0 (round to the Total Tor pano Standalone price per contract: Allocated to Tablet Allocated to Internet Total $ (round to the Enter cacluation into nearest whole Allocation per contract: cells dollar) ) Tablet Internet "Total s *Total should equal the sales revenue per contract GRADING Par (0) Cell Ref CorrectIncorrect Points awarded 049 INCORRECT 00 050 INCORRECT 0.0 G49 INCORRECT 0.0 H5C INCORRECT 0.0 H51 INCORRECT 0.0 G53 INCORRECT 0 0 H64 INCORRECT 0.0 G66 INCORRECT 0 0 H57 INCORRECT 00 Total for part (c) 0 TOTAL 0Step by Step Solution
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