Question

On July 1, 2021, Pharoah Inc. entered into a contract to deliver one of its specialty...

On July 1, 2021, Pharoah Inc. entered into a contract to deliver one of its specialty machines to Kickapoo Landscaping Co. The contract requires Kickapoo to pay the contract price of $3,500 in advance on July 15, 2021. Kickapoo pays Pharoah on July 15, 2021, and Pharoah delivers the machine (with cost of $2,200) on July 31, 2021.

Prepare the journal entry on July 1, 2021, for Pharoah. (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.)

Account Titles and Explanation

Debit

Credit

  

  

Prepare the journal entry on July 15, 2021, for Pharoah. (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.)

Account Titles and Explanation

Debit

Credit

  

  

Prepare the journal entry on July 31, 2021, for Pharoah. (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.)

Account Titles and Explanation

Debit

Credit
(To record contract price paid)
(To record cost of machine)
Business   Accounting   
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Answer #1
Answer

Journal Entries:
Date Accounts title and explanations Debit $ Credit $
01-May No entry for the agreement.
15-May Cash Account Dr. $     3,500
     Unearned revenue $     3,500
31-May Unearned revenue Dr. $     3,500
     Sales revenue $     3,500
31-May Cost of Goods sold Dr. $     2,200
     Inventory $     2,200
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