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Monty Company sells on credits goods that cost $$304,500$ to Ricard Company for $$409,500$ on January $2,2020.$ The sales price includes an installation fee, which has a standalone selling price of $$45,500.$ The standalone selling price of the goods is $$364,000.$ 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$)$ Monty 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 Monty 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

Please explain calculations, steps, and answers along the way please.

Answer & Explanation Solved by verified expert

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