Current Attempt in Progress Wildhorse Windows manufactures and sells custom storm windows for porches. Wildhorse also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Wildhorse enters into the following non-cancellable contract on July 1, 2023, with a local homeowner. The customer purchases windows for a price of $4,300 and chooses Wildhorse to do the installation. Wildhorse charges the same price for the windows regardless of whether it does the installation or not. The price of the installation service is estimated to have a fair value of $1,225. The customer pays Wildhorse $3,675 (which equals the fair value of the windows, which have a cost of $3,000) on delivery and the remaining balance on installation of the windows. The windows are delivered on September 1, 2023, Wildhorse completes installation on October 15, 2023, and the customer pays the balance due. Prepare the journal entries for Wildhorse on July 1, September 1, and October 15, 2023. (Credit account titles are automatically indented when the 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. Round percentage allocations to 2 decimal places, e.g. 15.25% and final answers to O decimal places, e.g. 5,275. Record journal entries in the order presented in the problem. List all debit entries before credit entries.)
Current Attempt in Progress Wildhorse Windows manufactures and sells custom storm windows for porches. Wildhorse also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Wildhorse enters into the following non-cancellable contract on July 1, 2023, with a local homeowner. The customer purchases windows for a price of $4,300 and chooses Wildhorse to do the installation. Wildhorse charges the same price for the windows regardless of whether it does the installation or not. The price of the installation service is estimated to have a fair value of $1,225. The customer pays Wildhorse $3,675 (which equals the fair value of the windows, which have a cost of $3,000) on delivery and the remaining balance on installation of the windows. The windows are delivered on September 1, 2023, Wildhorse completes installation on October 15, 2023, and the customer pays the balance due. Prepare the journal entries for Wildhorse on July 1, September 1, and October 15, 2023. (Credit account titles are automatically indented when the 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. Round percentage allocations to 2 decimal places, e.g. 15.25% and final answers to O decimal places, e.g. 5,275. Record journal entries in the order presented in the problem. List all debit entries before credit entries.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Current Attempt in Progress
Wildhorse Windows manufactures and sells custom storm windows for porches. Wildhorse also provides installation service for the
windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors.
Wildhorse enters into the following non-cancellable contract on July 1, 2023, with a local homeowner. The customer purchases
windows for a price of $4,300 and chooses Wildhorse to do the installation. Wildhorse charges the same price for the windows
regardless of whether it does the installation or not. The price of the installation service is estimated to have a fair value of $1,225. The
customer pays Wildhorse $3,675 (which equals the fair value of the windows, which have a cost of $3,000) on delivery and the
remaining balance on installation of the windows. The windows are delivered on September 1, 2023, Wildhorse completes installation
on October 15, 2023, and the customer pays the balance due.
Prepare the journal entries for Wildhorse on July 1, September 1, and October 15, 2023. (Credit account titles are automatically indented
when the 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.
Round percentage allocations to 2 decimal places, eg. 15.25% and final answers to O decimal places, e.g. 5,275. Record journal entries in the
order presented in the problem. List all debit entries before credit entries.)
Transcribed Image Text:Date
Account Titles and Explanation
(To record sales)
(To record cost of goods sold)
Debit
100
Credi
4
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