Question
Wildhorse company manufactures equipment. price range from 210000 to 1,500,000 and are quoted inclusive of installation. Sheffield purchases equipment from Wildhorse may 2 2023 1,134,000
Wildhorse company manufactures equipment. price range from 210000 to 1,500,000 and are quoted inclusive of installation. Sheffield purchases equipment from Wildhorse may 2 2023 1,134,000 installation service is estimated at fair value of 66,000 the cost of equipment is 800,000 Sheffield is obligated to pay Wildhorse 1,068,000 on delivery of equipment. Wildhorse delivers the equipment on June 1 2023 and completes the installation of the equipment on September 30 2023 Assume that the equipment and the installation are two distinct performance obligations that should be accounted for separately. prepare the journal entries for Wildhorse on May 2 and June 1and September 30 2023
May 2, 2023 - DR No Entry 0
CR No Entry
June 1 2023
Dr CR
DR CR
DR CR
June 1 2023 DR Cost of Goods 800,000
Cr Inventory 800,000
Sept 30 2023 DR Cash
CR
CR
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Cost Accounting College Version
Authors: Steven M. Bragg
1st Edition
1938910702, 978-1938910708
