1. Provide the journal entries (as needed) for Apple to sell a single iPhone for $800 under the upfront recognition method, assuming a 30% margin per iPhone
   1. Assume the sale occurred on January 1^st , 2015
   2. Show journal entries for the initial sales transaction in 1Q15, including inventory and cost of goods sold
   3. Show the corresponding journal entries for the second quarter
2. Provide the journal entries (as needed) for Apple to sell a single iPhone for $800 under the subscription method, assuming a 30% margin per iPhone
   1. Assume a 2 year subscription, beginning on January 1^st , 2015
   2. Show journal entries for the initial sales transaction in 1Q15, including inventory and cost of goods sold
   3. Show the corresponding journal entries for the second quarter
3. Based on the $800 sales price, compare how the two methods would impact Apples income statements, balance sheets, and cash flows statements for the two years beginning on January 1^st , 2015