Instructions Respond to the requirements related to the following independent revenue arrangements for Grill Master products and services. (a) Grill Master offers contract GM205, which is comprised of a free-standing gas grill for small patio use plus installation to a customer's gas line for a total price £800. On a standalone basis, the grill sells for £700 (cost £425), and Grill Master estimates that the fair value of the installation service (based on cost-plus estimation) is £150. Grill Master signed 10 GM205 contracts on April 20, 2015, and customers paid the contract price in cash. The grills were delivered and installed on May 15, 2015. Prepare journal entries for Grill Master for GM205 in April and May 2015.

Instructions Respond to the requirements related to the following independent revenue arrangements for Grill Master products and services. (a) Grill Master offers contract GM205, which is comprised of a free-standing gas grill for small patio use plus installation to a customer's gas line for a total price £800. On a standalone basis, the grill sells for £700 (cost £425), and Grill Master estimates that the fair value of the installation service (based on cost-plus estimation) is £150. Grill Master signed 10 GM205 contracts on April 20, 2015, and customers paid the contract price in cash. The grills were delivered and installed on May 15, 2015. Prepare journal entries for Grill Master for GM205 in April and May 2015.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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