What you need to do: Read the assigned case (in coursepack) and answer the following questions (Note: ignore taxes): 1.Assume Apple sells one iPhone 3G for $600 (AT&T subsidy of $350 plus retail price of$250) on October 1, 2008 (i.e., the beginning of the first quarter of its fiscal year).Assume a gross profit of 30% (i.e., $180) and a two-year contract. a.Prepare journal entries for this transaction only under BOTH the subscriptionaccounting method AND under the approach proposed by Apple.