On December 31, 2023, Pharoah Company sells production equipment to Coronado Inc. for $51,300. Pharoah includes a one-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on December 31, 2023. Pharoah estimates the prices to be $48,000 for the equipment and $3,300 for the cost of warranty. (a) Are the sale of the equipment and the warranty separate performance obligations within the contract? (b) Your answer is correct. No eTextbook and Media List of Accounts Attempts: 2 of 3 used Prepare a single compound journal entry to record this transaction on December 31, 2023. Ignore any related cost of goods sold entry. (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.)

On December 31, 2023, Pharoah Company sells production equipment to Coronado Inc. for $51,300. Pharoah includes a one-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on December 31, 2023. Pharoah estimates the prices to be $48,000 for the equipment and $3,300 for the cost of warranty. (a) Are the sale of the equipment and the warranty separate performance obligations within the contract? (b) Your answer is correct. No eTextbook and Media List of Accounts Attempts: 2 of 3 used Prepare a single compound journal entry to record this transaction on December 31, 2023. Ignore any related cost of goods sold entry. (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.)

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

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 10E

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