80.2K

Verified Solution

Link Copied!

In September 2025, Cullumber Corp. commits to selling 155 of its iPhone-compatible docking stations to Ivanhoe Co.for $14,880 ( $96 per product). The stations are delivered to Ivanhoe over the next 6 months. After 95 stations are delivered, the contract is modified and Cullumber promises to deliver an additional 40 products for an additional $3,640 ( $91 per station). All sales are cash on delivery. (a) Prepare the journal entry for Cullumber for the sale of the first 95 stations. The cost of each station is $51. (Credit account titles are outomatically indented when the 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. List all debit entries before credit entries.) 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 selis 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.) eTextbook and Media List of Accounts 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, es. 1.525.25

Answer & Explanation Solved by verified expert

See Answer