TreeHold Corp designs and builds custom harvesting equipment for logging companies across Canada The company, which is publicly traded, has a May 31 year end On February 18, 2020, TreeHold signed a contract with Coastal Harvesting Ltd to design and build 25 custom harvesters that can harvest wood at the steep grades found along much of the Pacific coast timber stands included in Coastals harvesting leases The following events took place in 2020 in relation to the contract 1 February 18 Officials from TreeHold and Coastal sign the contract The contract was for $4,178,000 TreeHold is to design, manufacture, and deliver the 25 machines to Coastals operations centre in Duncan, British Columbia TreeHolds management estimates that the design component of the contract would be valued at $492,521 if contracted for separately, while the machine construction component of the contract would be valued at $4,110,479 if the machines were purchased separately TreeHold agrees to provide a three year assurance type warranty for the machines, and the companys management estimates that the warranty claims would total $229,000 based on past experience Coastal agrees to pay a $1,161,000 deposit within 10 days of signing the contract and to pay the balance within 15 days of the equipment being delivered 2 February 25 Coastal pays the deposit specified in the contract 3 March 28 TreeHolds engineering staff complete the equipment design and it is approved by officials from Coastal 4 May 18 TreeHold completes construction of the 25 harvesters 5 May 20 The 25 harvesters are loaded onto TreeHolds trucks and are delivered to Coastals operation centre in Duncan later that day 6 June 2 Coastal pays the balance owing on the contract Determine when and how much revenue TreeHold would be able to recognize for the year ended May 31, 2020 (Round allocation percentage to 1 decimal place, e g 15 2 and final answers to O decimal places, e g 125 ) Revenue recognized on $ $ Revenue recognized or February 18, 2020 February 25, 2020 March 28, 2020 List of Accounts May 18, 2020 May 20, 2020 June 2, 2020 Prepare TreeHold's required journal entries for all of the dates appearing above along with any other necessary journal entries for the contract based on your analysis in part a (Credit account titles are automatically indented when 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 May 20 (To record sales revenue) (To accrue warranty liability)

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TreeHold Corp. designs and builds custom harvesting equipment for logging companies across Canada. The company, which is publicly traded, has a May 31 year end.

TreeHold Corp. designs and builds custom harvesting equipment for logging companies across Canada. The company, which is publicly traded, has a May 31 year end. On February 18, 2020, TreeHold signed a contract with Coastal Harvesting Ltd. to design and build 25 custom harvesters that can harvest wood at the steep grades found along much of the Pacific coast timber stands included in Coastals harvesting leases. The following events took place in 2020 in relation to the contract:

1.		February 18: Officials from TreeHold and Coastal sign the contract. The contract was for $4,178,000. TreeHold is to design, manufacture, and deliver the 25 machines to Coastals operations centre in Duncan, British Columbia. TreeHolds management estimates that the design component of the contract would be valued at $492,521 if contracted for separately, while the machine construction component of the contract would be valued at $4,110,479 if the machines were purchased separately. TreeHold agrees to provide a three-year assurance-type warranty for the machines, and the companys management estimates that the warranty claims would total $229,000 based on past experience. Coastal agrees to pay a $1,161,000 deposit within 10 days of signing the contract and to pay the balance within 15 days of the equipment being delivered.
2.		February 25: Coastal pays the deposit specified in the contract.
3.		March 28: TreeHolds engineering staff complete the equipment design and it is approved by officials from Coastal.
4.		May 18: TreeHold completes construction of the 25 harvesters.
5.		May 20: The 25 harvesters are loaded onto TreeHolds trucks and are delivered to Coastals operation centre in Duncan later that day.
6.		June 2: Coastal pays the balance owing on the contract.

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Determine when and how much revenue TreeHold would be able to recognize for the year ended May 31, 2020. (Round allocation percentage to 1 decimal place, e.g. 15.2% and final answers to O decimal places, e.g. 125.) Revenue recognized on $ $ Revenue recognized or February 18, 2020 February 25, 2020 March 28, 2020 List of Accounts May 18, 2020 May 20, 2020 June 2, 2020 Prepare TreeHold's required journal entries for all of the dates appearing above along with any other necessary journal entries for the contract based on your analysis in part "a." (Credit account titles are automatically indented when 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 May 20 (To record sales revenue) (To accrue warranty liability)