Prepare any journal entries for Crane on May $2,$ June $1,$ and September $30,2023.($Credit account titles are automatically indented Current Attempt in Progress

Crane Company manufactures equipment. Crane's products range from simple automated machinery to complex systems containing

numerous components. Unit selling prices range from $$225,000$ to $$1,500,000,$ and are quoted inclusive of installation. The

installation process does not involve changes to the features of the equipment to perform to specifications. Crane has the following

arrangement with Shamrock Inc.

$,$ Shamrock purchases equipment from Crane on May $2,2023,$ for a price of $$997,500$ and contracts with Crane to install the

equipment. Crane charges the same price for the equipment irrespective of whether it does the installation or not. Using

market data, Crane determines that the installation service is estimated to have a fair value of $$52,500.$ The cost of the

equipment is $$500,000.$

$,$ Shamrock is obligated to pay Crane the $$945,000$ on delivery of the equipment and the balance on the completion of the

installation.

Crane delivers the equipment on June $1,2023,$ and completes the installation of the equipment on September $30,2023.$ Assume that

the equipment and the installation are two distinct performance obligations that should be accounted for separately.

$($a$)$

Your answer is correct.

Allocate the transaction price of $$997,500$ among the performance obligations of the contract. Assume Crane follows IFRS.

$($Round percentage allocations to $2$ decimal places, e$.$g$.12\mathrm{.}25\%$ and final answers to $0$ decimal places, e$.$g$.5,275.)$

Delivery equipment $

when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the

amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.$)$

Date

Account Titles and Explanation

Debit

$($To record sales$)$

$($To record cost of goods sold$)$

$$