Q1: On April 1, 2018, JS Co. sold equipment to JL Co. Service in exchange for a zerointerest bearing note with a face value of 109,000, with payment due in 12 months. The cost of goods sold is 58,000. The fair value of the equipment on the date of sale was 100,000.

A- Record the entry showing how much revenue should JS Co. record on April 1, 2018.

B- Record the entry showing how much revenue should it report related to this transaction on December 31, 2018.

Q2: On July 31, OYZ Company contracted to have two products built by TAB Manufacturing for a total of 270,000. The contract specifies that payment will only occur after both products have been transferred to OYZ Company. TAB determines that the standalone prices are 70,000 for Product 1 and 200,000 for Product 2. On August 1, Product 1 has been transferred. On November 1, Product 2 has been transferred.

A- What is the TAB's journal entry to record the sales occurred on August 1.

B- What is the TAB's journal entry to record the sales occurred on November 1.