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Wilson Equipment Inc. sells computer software to manufacturing companies to help with inventory management. This...

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Accounting

Wilson Equipment Inc. sells computer software to manufacturing companies to help with inventory management. This software has a stand-alone price of $147,000. On January 1,2023, Wilson to sell the software inclusive of a three-year service contract for $189,000.
Required:
1) Prepare the January 1,2023 journal entry to record the sale of the computer software plus service contract for $189,000 assuming a comparable service contract is sold separately for $63,000. Wilson uses the relative stand-alone value method for multiple deliverables. Show all of your calculations in the space provided below. Note: you do not need to record the related cost of goods sold entry.
2) Prepare the December 31,2023 journal entry to record any recognized revenue on the service contract.
3) Prepare the entry on January 1,2023, assuming a reliable estimate for a comparable service contract is not available. (ie. use the residual value method)

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