Question 1 (35 marks) Home Plus is a leading home appliance dealer and retailer, providing a range of affordable home appliances with services. The company has the following independent transactions in 2021. Part A (24 marks) Home Plus sells dishwashers on a standalone basis at $8,000 (with a cost of $5,000 each). Customers can choose Home Plus for installation and maintenance. The installation process does not involve changes in the dishwashers, so this service can be provided by other vendors. Home Plus charges $500 for the installation service, an approximate amount charged by independent third parties. A two-year maintenance service is separately priced at $1,500. On March 1, 2021, a customer purchases a dishwasher with both installation and maintenance services for $8,000. The maintenance covers from April 1, 2021 to March 31, 2023. The contract specifies that the full payment of $8,000 shall be made once the dishwasher is delivered and installed. The dishwasher was delivered on March 28, 2021 and was installed on March 29, 2021 respectively. Home Plus received the cash payment from the customer on April 1, 2021. Home Plus has a year-end date on each December 31. Requirement: A.1 Discuss and identify the performance obligations within the contract. (6 marks) A.2 Allocate the transaction price to each performance obligation within the contract. (6 marks) A.3 Prepare the journal entries for Home Plus for 2021, in regard to this contract. Use separate accounts for sales revenue and service revenue. (12 marks) Part B (11 marks) On January 1, 2021, Home Plus shipped 20 wireless vacuums on consignment to Clean Outlet, Inc. The cost of each vacuum was $3,500. The cost of shipping the vacuums amounted to $1,800 and was paid for by Home Plus on January 15, 2021. Once received the wireless vacuums, Clean Outlet paid for installation and setup costs of $3,900 on January 20, 2021. On January 25, 2021, Clean Outlet paid an advertising of $3,000 to promote the vacuums on social media. Both the installation and setup costs and the advertising are reimbursable from Home Plus. Clean Outlet sold 15 vacuums at $5,500 each during February. On February 28, 2021, Clean Outlet reported to Home Plus the sales, retained a 6% commission and remitted the cash due to Home Plus. Requirement: B. Prepare journal entries for Home Plus during January to February of 2021. (11 marks)