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Sunshine offers a contract to Cape Country Club, which is comprised of 10 patio set...

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Accounting

Sunshine offers a contract to Cape Country Club, which is comprised of 10 patio set plus installation for a price of $2,850 each. On a standalone basis, the patio sets sell for $2,400(cost $1,410), and Sunshine estimates that the fair value of the installation service (based on cost-plus estimation) is $600. The contract was signed on March 21,2024, and the Country Club paid the contract price in cash. The patio sets were installed on April 30,2024.
a) Describe the performance obligations.
b) Show the calculations for the transaction price and allocation of the transaction price to the performance obligations.
c) Prepare journal entries for Sunshine for March and April 2024.
\table[[March 21,,,],[,,,],[,,,],[,,,],[,,,],[April 30,,,],[,,,],[,,,],[,,,]]
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