|
Question 22
Oriole Windows manufactures and sells custom storm windows for
enclosed porches. Oriole also provides installation service for the
windows. The installation process does not involve changes in the
windows, so this service can be provided by other vendors. Oriole
enters into the following contract on June 1, 2021, with a local
homeowner. The customer purchases windows for a price of $5,580 and
chooses Oriole to do the installation. Oriole charges the same
price for the windows irrespective of whether it does the
installation or not. The price of the installation service is
estimated to have a fair value of $1,220. The customer pays Oriole
$4,880 (which equals the fair value of the windows, which have a
cost of $2,200) upon delivery and the remaining balance upon
installation of the windows. The windows are delivered on August 1,
2021, Oriole completes installation on September 15, 2021, and the
customer pays the balance due. (Round amounts to nearest
dollar.)
Prepare the journal entries for Oriole in 2021. (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 0 for the amounts. Record journal
entries in the order presented in the problem.)
|
Date
|
Account Titles and Explanation
|
Debit
|
Credit
|
|
June 1, 2021August 1, 2021September 15, 2021
|
|
|
|
|
|
|
|
|
June 1, 2021August 1, 2021September 15, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(To record windows delivered) |
|
|
|
June 1, 2021August 1, 2021September 15, 2021
|
|
|
|
|
|
|
|
|
(To record cost of goods sold) |
|
|
|
June 1, 2021August 1, 2021September 15, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Question Attempts: 0 of 1 used |
|
SAVE FOR LATER
|
SUBMIT ANSWER
|
|
|
|
|