Tablet Tailors sells tablet PCs combined with Internet service (Tablet Bundle A) that permits the tablet to connect to the Internet anywhere (that is, set up a WiFi hotspot). The price for the tablet and a four-year Internet connection service contract is $450. The stand-alone selling price of the tablet is $225 (cost to Tablet Tailors $158). Tablet Tailors sells the Internet access service independently for an upfront payment of $100, plus $65 payments due January 2, 2021, 2022, and 2023. With an imputed interest rate of 8%, the stand-alone value of the service is $268. On January 2, 2020, Tablet Tailors signed 100 contracts, receiving a total of $28,249 in cash (full payment of $450 each in cash, less the present value of the note for the future service plan payments due January 2 each year), delivered the tablets, and started service for 100 tablet packages. Tablet Tailors has a calendar year end and records adjusting entries at the end of the year. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Allocate the transaction price among the performance obligations of the contract. Assume IFRS is followed. Use Excel to calculate the present value of the note receivable and prepare an instalment note receivable schedule for the term of the note. (Round percentage allocations to two decimal places, eg. 15.25 and final answers to O decimal places, eg. 5,275.) Instalment Note Receivable Schedule Note Cash Collected Interest Revenue Principal Collected Date An Jan. 2 2020 S Jan. 2 2021 $ 0 $ $ Jan. 2. 2022 Jan. 2 2023 Activat Part 2 Prepare any journal entries on January 2, 2020, and at year end on December 31, 2020. (Credit account titles are automatic Indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and for the amounts.) Date Account Titles and Explanation Debit Credit January 2, 2020 (To record sales) January 2, 2020 January 2, 2020 (To record cost of goods sold) December 31, 2020 (To accrue interest on instalment note receivable) December 31, 2020 (To record revenue for Internet service provided in 2020) Acti Prepare any journal entries on January 2, 2021, and on December 31, 2021. (Credit account titles are automatically Indented when the amount is entered. Do not Indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit January 2, 2021 Activate Go to Sett December 31, 2021 (To accrue interest on instalment note receivable) December 31, 2021 (To record revenue for Internet service provided in 2021) Prepare any journal entries on January 2, 2022, and on December 31, 2022. (Credit account titles are automatically Indented the amount is entered. Do not Indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit January 2, 2022 December 31, 2022 (To accrue interest on instalmentnote receivable) Prepare any journal entries to record this revenue arrangement on January 2, 2020, assuming that Tablet Tailors has no reliable data with which to estimate the stand-alone selling price for the Internet service (Credit account tities are automatically Indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account tities and enter for the amounts) Date Account Titles and Explanation Debit Credit January 2, 2020 (To record sales) January 2, 2020 Activate Go to Settings Tablet Tailors sells tablet PCs combined with Internet service (Tablet Bundle A) that permits the tablet to connect to the Internet anywhere (that is, set up a WiFi hotspot). The price for the tablet and a four-year Internet connection service contract is $450. The stand-alone selling price of the tablet is $225 (cost to Tablet Tailors $158). Tablet Tailors sells the Internet access service independently for an upfront payment of $100, plus $65 payments due January 2, 2021, 2022, and 2023. With an imputed interest rate of 8%, the stand-alone value of the service is $268. On January 2, 2020, Tablet Tailors signed 100 contracts, receiving a total of $28,249 in cash (full payment of $450 each in cash, less the present value of the note for the future service plan payments due January 2 each year), delivered the tablets, and started service for 100 tablet packages. Tablet Tailors has a calendar year end and records adjusting entries at the end of the year. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Allocate the transaction price among the performance obligations of the contract. Assume IFRS is followed. Use Excel to calculate the present value of the note receivable and prepare an instalment note receivable schedule for the term of the note. (Round percentage allocations to two decimal places, eg. 15.25 and final answers to O decimal places, eg. 5,275.) Instalment Note Receivable Schedule Note Cash Collected Interest Revenue Principal Collected Date An Jan. 2 2020 S Jan. 2 2021 $ 0 $ $ Jan. 2. 2022 Jan. 2 2023 Activat Part 2 Prepare any journal entries on January 2, 2020, and at year end on December 31, 2020. (Credit account titles are automatic Indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and for the amounts.) Date Account Titles and Explanation Debit Credit January 2, 2020 (To record sales) January 2, 2020 January 2, 2020 (To record cost of goods sold) December 31, 2020 (To accrue interest on instalment note receivable) December 31, 2020 (To record revenue for Internet service provided in 2020) Acti Prepare any journal entries on January 2, 2021, and on December 31, 2021. (Credit account titles are automatically Indented when the amount is entered. Do not Indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit January 2, 2021 Activate Go to Sett December 31, 2021 (To accrue interest on instalment note receivable) December 31, 2021 (To record revenue for Internet service provided in 2021) Prepare any journal entries on January 2, 2022, and on December 31, 2022. (Credit account titles are automatically Indented the amount is entered. Do not Indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit January 2, 2022 December 31, 2022 (To accrue interest on instalmentnote receivable) Prepare any journal entries to record this revenue arrangement on January 2, 2020, assuming that Tablet Tailors has no reliable data with which to estimate the stand-alone selling price for the Internet service (Credit account tities are automatically Indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account tities and enter for the amounts) Date Account Titles and Explanation Debit Credit January 2, 2020 (To record sales) January 2, 2020 Activate Go to Settings