Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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solve C
Transcribed Image Text:In September 2025, Ivanhoe Corp. commits to selling 146 of its iPhone-compatible docking stations to Kingbird Co. for $15,330 ($105
per product). The stations are delivered to Kingbird over the next 6 months. After 89 stations are delivered, the contract is modified
and Ivanhoe promises to deliver an additional 43 products for an additional $4,300 ($100 per station). All sales are cash on delivery.
(a)
Your answer is correct.
Prepare the journal entry for Ivanhoe for the sale of the first 89 stations. The cost of each station is $51. (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. List all debit entries before credit entries.)
Account Titles and Explanation
Cash
Debit
9345
Credit
(b)
Sales Revenue
(To record sales)
Cost of Goods Sold
Inventory
(To record cost of goods sold)
eTextbook and Media
List of Accounts
Your answer is correct.
4539
9345
4539
Attempts: 1 of 3 used
Prepare the journal entry for the sale of 10 more stations after the contract modification, assuming that the price for the
additional stations reflects the standalone selling price at the time of the contract modification. In addition, the additional stations
are distinct from the original products as Ivanhoe regularly sells the products separately. (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. List all debit entries before credit entries.)
Account Titles and Explanation
Cash
Debit
Credit
1050
(c)
Sales Revenue
(To record sales)
Cost of Goods Sold
Inventory
(To record cost of goods sold)
eTextbook and Media
List of Accounts
510
1050
510
Attempts: 2 of 3 used
Prepare the journal entry for the sale of 10 more stations (as in (b)), assuming that the pricing for the additional products does not
reflect the standalone selling price of the additional products and the prospective method is used. (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 answers to 2 decimal places, e.g. 1,525.25. List all debit entries before credit entries.)
Account Titles and Explanation
(To record sales)
(To record cost of goods sold)
Debit
Credit
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