On April 7, 2024, McCool Systems signed a contract to develop and install a virtual private network (VPN) for Billy Majors Stores. The transaction price, including installation, is $580,000. The VPN consists of four components: regional offices, corporate office, retail stores, and remote users (for example, buyers). Each component is fully functional at the point of delivery. Each of the four components of the total network is correctly classified as a performance obligation, and each has standalone fair values as follows:

McCool collects the contract price in advance. McCool completed the regional office and remote user components on December 31, 2024. Prepare the journal entry to record the contract and to record any revenue to be recognized during the current period. Show all supporting computations.

VPN Component Regional offices Corporate office Retail stores Remote users Total Standalone Sales Value $130,000 270,000 150,000 50,000 $600,000