Scroll down to complete all parts of this task. During Year 1, HRH Granite entered into sales contracts and other revenue-related transactions that the finance manager, Marsha Chapman, would like analyzed and recorded correctly as of the company's fiscal year-end of June 30. For its first year in business, the company is recording transactions directly into the company's general ledger. As HRH Granite's staff accountant, Marsha has asked that you perform the analyses and prepare the necessary journal entries. In performing your tasks, you should assume that, where appropriate, the five-step process for recognizing revenue from contracts with customers has been accurately applied. Using the information provided in the exhibits, complete the journal entries in the table below for each respective exhibit. Enter the account names to record the journal entries for each exhibit in column A. In column B, enter the debits needed to complete the journal entries. In column C, enter the credits needed to complete the journal entries. Enter all amounts as positive numbers. questions [1] March 31, Year 1: Granite countertop ID 7469 sold for cash of $2,600. However, customer requested for us to hold the countertop until July 8, Year 1, until its warehouse was available for the inventory. Currently, the finished countertop is located in the "to be delivered" station, which is to be delivered on July 8. Subsequent documentation can be found in the shared F:/drive under folder path Customer B --> March Sales [2] June 15, Year 1: Granite countertop ID 8103 sold on account for $3,650. Delivered on June 15, Year 1. Account to be paid on October 1, Year 2. Thank you! Linda Peters Associate Sales Manager, HRH Granite X Sales Contracts Associate Sales Manager, HRH Granite Supplemental Information: E-mail dated Wednesday, June 30, Year 1, 10:21 a.m. 1) For the HRH Granite display unit model and maintenance that was sold to Kitchen Warehouse, the standard pricing is as follows: HRH Granite sells the display unit and annual maintenance services separately for the following amounts: - Display unit $15,000 - Annual maintenance of display unit $2,000/year 2) The accessibility fee is not distinct nor separately identifiable from the other products. Sales Contracts Bundled Contract Arrangement This sales contract the contract ys entered into on 4717 Yeart the elective date), by and between HRH Granite (the "seller") and Kitchen Warehouse (the "buyer") for a contract term of five years. The total contract price of $20,000 is to be paid in accordance with the terms of this contract. The seller agrees to make available for sale and the buyer shall purchase the following: - One-time accessibility fee - Display unit - Annual maintenance of display unit *collectively known as ("the products"). The fee structure agreed to by the seller and buyer of the products includes the following: - One-time accessibility fee $ 2,500 - Display unit $10,000 - Annual maintenance of display unit $1,500/year HRH Granite: HRH Granite / LBC Kitchen Warehouse: Kitchen Warehouse /JCO Bundled Contract Arrangement - One-time accessibility fee $ 2,500 Display unit $10,000 - Annual maintenance of display unit $1,500/year HRH Granite: HRH Granite / LBC Kitchen Warehouse: Kitchen Warehouse /JCO Supplemental Information: Sales Contract dated 04/01 Year 1 1) Kitchen Warehouse paid $20,000 to the company on April 1, Year 1. 2) At June 30 (the company's year-end), any balances in unearned revenue should be amortized to revenue as appropriate. Repurchase Agreement Date: 1/15/Year 1 RE: Repurchase agreement with Kip Krates This memo is provided as a document summary to the repurchase agreement between us, HRH Granite, and the buyer, Kip Krates. Per your request, the details are as follows: - Repurchase agreement date: 01/15/Year 1 - Customer paid date: 1/15/Year 1 - Original purchase price paid by customer: $30,000 Eligible for repurchase: Display No. 30330 - Repurchase agreement call option gives the right to repurchase the product for $35,000 on or before June 30, Year 1. Sale and Right of Return Hi Marsha, Yesterday, on June 29, we sold 100 pieces of Product ID 0010, which generally has a high historical return rate of 35 percent. These 100 pieces totaled $15,500. Today, the same customer to whom we sold these 100 pieces yesterday, returned 15 pieces or 15 percent of the intitial product purchased. As an inadvertent oversight, neither the sale nor return was included in my original e-mail at 10:21 this morning, but should be included in the June 30 year-end financial statements. Please be sure to adjust the financial statements accordingly. Thank you! Linda Peters Associate Sales Manager, HRH Granite 1 A B 1 Account Name Debit Credit 2 Exhibit 1 Journal Entries (Year 1 Sales) 3 3/31 123 4 iii 123 5 6 6/15 123 123 7 8 8 vhikit. Tarinal Entrian IVaar 1 Cala and Vaar 4 Amortization! 8 9 Exhibit 2 Journal Entries (Year 1 Sale and Year 1 Amortization) 10 4/1 123 11 IF 123 : 12 123 13 14 6/30 123 15 123 16 17 Exhibit 3 Journal Entries (Year 1 Sale and Ontion I anse) TBS-02227 EXHIBITS close all exhibits Bundled Contract Arrangement Repurchase Agreement Sales Contracts Sale and Right of Return 17 Exhibit 3 Journal Entries (Year 1 Sale and Option Lapse) HI! 123 18 1/15 123 19 20 21 6/30 iii 123 22 123 23 23 24 Exhibit 4 Journal Entries (Year 1 Return Liability and Return Payment) 25 6/29 iii 123 26 123 27 lii 123 28 29 6/30 123 30 123 Scroll down to complete all parts of this task. During Year 1, HRH Granite entered into sales contracts and other revenue-related transactions that the finance manager, Marsha Chapman, would like analyzed and recorded correctly as of the company's fiscal year-end of June 30. For its first year in business, the company is recording transactions directly into the company's general ledger. As HRH Granite's staff accountant, Marsha has asked that you perform the analyses and prepare the necessary journal entries. In performing your tasks, you should assume that, where appropriate, the five-step process for recognizing revenue from contracts with customers has been accurately applied. Using the information provided in the exhibits, complete the journal entries in the table below for each respective exhibit. Enter the account names to record the journal entries for each exhibit in column A. In column B, enter the debits needed to complete the journal entries. In column C, enter the credits needed to complete the journal entries. Enter all amounts as positive numbers. questions [1] March 31, Year 1: Granite countertop ID 7469 sold for cash of $2,600. However, customer requested for us to hold the countertop until July 8, Year 1, until its warehouse was available for the inventory. Currently, the finished countertop is located in the "to be delivered" station, which is to be delivered on July 8. Subsequent documentation can be found in the shared F:/drive under folder path Customer B --> March Sales [2] June 15, Year 1: Granite countertop ID 8103 sold on account for $3,650. Delivered on June 15, Year 1. Account to be paid on October 1, Year 2. Thank you! Linda Peters Associate Sales Manager, HRH Granite X Sales Contracts Associate Sales Manager, HRH Granite Supplemental Information: E-mail dated Wednesday, June 30, Year 1, 10:21 a.m. 1) For the HRH Granite display unit model and maintenance that was sold to Kitchen Warehouse, the standard pricing is as follows: HRH Granite sells the display unit and annual maintenance services separately for the following amounts: - Display unit $15,000 - Annual maintenance of display unit $2,000/year 2) The accessibility fee is not distinct nor separately identifiable from the other products. Sales Contracts Bundled Contract Arrangement This sales contract the contract ys entered into on 4717 Yeart the elective date), by and between HRH Granite (the "seller") and Kitchen Warehouse (the "buyer") for a contract term of five years. The total contract price of $20,000 is to be paid in accordance with the terms of this contract. The seller agrees to make available for sale and the buyer shall purchase the following: - One-time accessibility fee - Display unit - Annual maintenance of display unit *collectively known as ("the products"). The fee structure agreed to by the seller and buyer of the products includes the following: - One-time accessibility fee $ 2,500 - Display unit $10,000 - Annual maintenance of display unit $1,500/year HRH Granite: HRH Granite / LBC Kitchen Warehouse: Kitchen Warehouse /JCO Bundled Contract Arrangement - One-time accessibility fee $ 2,500 Display unit $10,000 - Annual maintenance of display unit $1,500/year HRH Granite: HRH Granite / LBC Kitchen Warehouse: Kitchen Warehouse /JCO Supplemental Information: Sales Contract dated 04/01 Year 1 1) Kitchen Warehouse paid $20,000 to the company on April 1, Year 1. 2) At June 30 (the company's year-end), any balances in unearned revenue should be amortized to revenue as appropriate. Repurchase Agreement Date: 1/15/Year 1 RE: Repurchase agreement with Kip Krates This memo is provided as a document summary to the repurchase agreement between us, HRH Granite, and the buyer, Kip Krates. Per your request, the details are as follows: - Repurchase agreement date: 01/15/Year 1 - Customer paid date: 1/15/Year 1 - Original purchase price paid by customer: $30,000 Eligible for repurchase: Display No. 30330 - Repurchase agreement call option gives the right to repurchase the product for $35,000 on or before June 30, Year 1. Sale and Right of Return Hi Marsha, Yesterday, on June 29, we sold 100 pieces of Product ID 0010, which generally has a high historical return rate of 35 percent. These 100 pieces totaled $15,500. Today, the same customer to whom we sold these 100 pieces yesterday, returned 15 pieces or 15 percent of the intitial product purchased. As an inadvertent oversight, neither the sale nor return was included in my original e-mail at 10:21 this morning, but should be included in the June 30 year-end financial statements. Please be sure to adjust the financial statements accordingly. Thank you! Linda Peters Associate Sales Manager, HRH Granite 1 A B 1 Account Name Debit Credit 2 Exhibit 1 Journal Entries (Year 1 Sales) 3 3/31 123 4 iii 123 5 6 6/15 123 123 7 8 8 vhikit. Tarinal Entrian IVaar 1 Cala and Vaar 4 Amortization! 8 9 Exhibit 2 Journal Entries (Year 1 Sale and Year 1 Amortization) 10 4/1 123 11 IF 123 : 12 123 13 14 6/30 123 15 123 16 17 Exhibit 3 Journal Entries (Year 1 Sale and Ontion I anse) TBS-02227 EXHIBITS close all exhibits Bundled Contract Arrangement Repurchase Agreement Sales Contracts Sale and Right of Return 17 Exhibit 3 Journal Entries (Year 1 Sale and Option Lapse) HI! 123 18 1/15 123 19 20 21 6/30 iii 123 22 123 23 23 24 Exhibit 4 Journal Entries (Year 1 Return Liability and Return Payment) 25 6/29 iii 123 26 123 27 lii 123 28 29 6/30 123 30 123