The company decided early on in its history that its proprietary production data would be more effective if it built its own specialized production equipment. The company has earned much more than the initial outlay for its special production methods, despite the higher upfront costs for new equipment.Although the company has historically done this production in$-$house, a local university recently approached them to request that they provide them with equipment for producing specialty bags on their own. Due to the fact that many members of Saola's Board of Directors $($and several of its major shareholders$)$ are alumni of this university, Saola's management decided to sell the university a three machine system. While Saola has never sold its equipment before, machinery for making bags can be purchased from many other companies. In addition, many of those companies also provide service contracts to care for the machines they sell. Other versions of the machines typically sell for $$230,000$; $$368,000$; and $$276,000.$ A $3-$year maintenance contract $($like this one$)$ sells, on average, for $$138,000$

As part of the deal, Saola's management has insisted that the university also purchase a maintenance contract $($which begins once the last machine is installed$).$ In this way, Saola's engineers and machinists will be able to maintain the equipment, minimizing the risk of losing their competitive advantage. $$920,000$ is the total contract price for the machines and maintenance. By the end of $2022,$ Saola had installed both the first and third machines for which the university had paid $$506,000.$ Saola's management team expects the final machine to be installed in January $2023,$ following which the maintenance contract will begin. The university will pay the balance of the contract once the last one has been installed.

Here are the instructions for calculation

Saola rounds all revenue allocation percentages to the nearest percentage point in order to ensure accuracy. Therefore, $12\mathrm{.}333\%($or $0\mathrm{.}1233)$ would be rounded down to $12\%($or $\mathrm{.}12).$ Saola will adjust the percentage for the last obligation $($or the one that will be completed last$)$ if the sum of the rounded percentages exceeds $($or falls short$)$ of $100\%($or $1).$ When you round your percentages, if the sum doesn't equal $100\%($if it gives you $99\%$ or $101\%),$ manually adjust the last obligation's percentage to $100\%.($I$\text{'}$m also confused by this part, could you explain and show me how?$)$

Here are the instructions for calculation

Saola's management would like to know the effect of your adjustment on the following ratios:

$*$ Profit Margin $($Net Income $/$ Net Sales$)$

$*$ Current Ratio

$*$ ROA

How to make the appropriate journal entries, if any, to reflect the installation of the machines $($including any necessary adjustments to income tax expense$)$ and the university's first payment. Assume Saola spent $$184,000$ on the first machine, $$331,000$ on the second, and $$193,000$ on the third. The average cost of the maintenance contract is $$41,000.$ Saola's work building these machines has already been appropriately recorded in inventory. Make any necessary modifications to the financial statements. Include only the amount the client has paid What is the journal entries?