Contract A ACY Corp. offered a contract with DSE Corp. on March 1, 2020, which is...

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Contract A ACY Corp. offered a contract with DSE Corp. on March 1, 2020, which is comprised of 100 computers and installation to DSE's computer lab, for a total price HK$ 1,500,000. On a standalone basis, the computer sells for HK$15,000 (cost HK$9,000). DSE can also buy the installation service from ACY's competitor MKT Corp. and the estimated price is HK$200 per computer. DSE paid in full on March 1, 2020. The computers were delivered and installed on May 1, 2020. Contract B ACY Corp. also sold its self-developed software sets to DSE. Corp. Each software set was sold for HK$1,500 (cost HK$900) on credit with terms 3/15, net/25. (a) Please prepare journal entries related to Contract A for ACY Corp. during the year of 2020. [7 points] (b) Please prepare journal entries related to Contract B for ACY Corp. in each of the following scenarios. [13 points] (1) ACY sold and delivered 30 software sets on March 1, 2020 and recorded sales net. (i) Assume DSE. Corp paid in full on March 10, 2020. (ii) Assume DSE. Corp paid for half of the software sets on March 10, 2020 and the other half on March 30, 2020. (2) ACY sold and delivered 30 software sets on March 1, 2020 and recorded gross price. (i) and (ii) are the same as in (1). Contract A ACY Corp. offered a contract with DSE Corp. on March 1, 2020, which is comprised of 100 computers and installation to DSE's computer lab, for a total price HK$ 1,500,000. On a standalone basis, the computer sells for HK$15,000 (cost HK$9,000). DSE can also buy the installation service from ACY's competitor MKT Corp. and the estimated price is HK$200 per computer. DSE paid in full on March 1, 2020. The computers were delivered and installed on May 1, 2020. Contract B ACY Corp. also sold its self-developed software sets to DSE. Corp. Each software set was sold for HK$1,500 (cost HK$900) on credit with terms 3/15, net/25. (a) Please prepare journal entries related to Contract A for ACY Corp. during the year of 2020. [7 points] (b) Please prepare journal entries related to Contract B for ACY Corp. in each of the following scenarios. [13 points] (1) ACY sold and delivered 30 software sets on March 1, 2020 and recorded sales net. (i) Assume DSE. Corp paid in full on March 10, 2020. (ii) Assume DSE. Corp paid for half of the software sets on March 10, 2020 and the other half on March 30, 2020. (2) ACY sold and delivered 30 software sets on March 1, 2020 and recorded gross price. (i) and (ii) are the same as in (1).

Answer rating: 100% (QA)

Answer A Contract price 1500000 Stand alone Proportion Allocation 100 computers 1500000 099 14802631... View the full answer