(a) Prepare the journal entries (if any) to record the sale on January 2, 2020. (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.) Date Account Titles and Explanation Debit Credit Jan. 2, 2020 enter an account title to record the transaction on January 2, 2017 enter a debit amount enter a credit amount enter an account title to record the transaction on January 2, 2017 enter a debit amount enter a credit amount enter an account title to record the transaction on January 2, 2017 enter a debit amount enter a credit amount (To record sales on account) Jan. 2, 2020 enter an account title to record the transaction on January 2, 2017 enter a debit amount enter a credit amount enter an account title to record the transaction on January 2, 2017 enter a debit amount enter a credit amount (To record cost of goods aold) (b) Wildhorse prepares an income statement for the first quarter of 2020, ending on March 31, 2020 (installation was completed on June 18, 2020). How much revenue should Wildhorse recognize related to its sale to Ricard? First Quarter Sales Revenue $enter a dollar amount Cost of Goods Sold enter a dollar amount Gross Profit $enter a total amount for this statement

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 19E: Rix Company sells home appliances and provides installation and service for its customers. On April...

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Wildhorse Company sells on credits goods that cost $309,500 to Ricard Company for $415,500 on January 2, 2020. The sales price includes an installation fee, which has a standalone selling price of $45,500. The standalone selling price of the goods is $370,000. The installation is considered a separate performance obligation and is expected to take 6 months to complete.

(a) Prepare the journal entries (if any) to record the sale on January 2, 2020. (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.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 2, 2020	enter an account title to record the transaction on January 2, 2017	enter a debit amount	enter a credit amount
	enter an account title to record the transaction on January 2, 2017	enter a debit amount	enter a credit amount
	enter an account title to record the transaction on January 2, 2017	enter a debit amount	enter a credit amount
	(To record sales on account)
Jan. 2, 2020	enter an account title to record the transaction on January 2, 2017	enter a debit amount	enter a credit amount
	enter an account title to record the transaction on January 2, 2017	enter a debit amount	enter a credit amount
	(To record cost of goods aold)

(b) Wildhorse prepares an income statement for the first quarter of 2020, ending on March 31, 2020 (installation was completed on June 18, 2020). How much revenue should Wildhorse recognize related to its sale to Ricard?

	First Quarter
Sales Revenue		$enter a dollar amount
Cost of Goods Sold		enter a dollar amount
Gross Profit		$enter a total amount for this statement

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