Cullumber Company manufactures equipment. Cullumber's products range from simple automated machinery to complex systems containing numerous...

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Cullumber Company manufactures equipment. Cullumber's products range from simple automated machinery to complex systems containing numerous components. Unit selling prices range from $245,000 to $1,670,000, and are quoted inclusive of installation. The installation process does not involve changes to the features of the equipment to perform to specifications. Cullumber has the following arrangement with Bonita Inc. Bonita purchases equipment from Cullumber on May 2, 2023, for a price of $1,032,000 and contracts with Cullumber to install the equipment. Cullumber charges the same price for the equipment irrespective of whether it does the installation or not. Using market data, Cullumber determines that the installation service is estimated to have a fair value of $43,000. The cost of the equipment is $700,000. Bonita is obligated to pay Cullumber the $989,000 on delivery of the equipment and the balance on the completion of the installation. Prepare any journal entries for Cullumber on May 2, June 1, and September 30, 2023. (Credit account titles are automatically indented when the amount is entere in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation May 2, 2023 No Entry No Entry Debit Credit June 1, 2023 Accounts Receivable 1720 Cullumber delivers the equipment on June 1, 2023, and completes the installation of the equipment on September 30, 2023. Assume that the equipment and the installation are two distinct performance obligations that should be accounted for separately. (a) Cash Sales Revenue (To record sales) June 1, 2023 Cost of Goods Sold 989000 990720 700000 Your answer is correct. Inventory (To record cost of goods sold) Allocate the transaction price of $1,032,000 among the performance obligations of the contract. Assume Cullumber follows IFRS. (Round percentage allocations to 2 decimal places, e.g. 12.25% and final answers to O decimal places, e.g. 5,275.) September 30,2023 Cash 43000 Delivery equipment $ Installation 990720 41280 Sales Revenue Accounts Receivable 700000 41280 1720 Cullumber Company manufactures equipment. Cullumber's products range from simple automated machinery to complex systems containing numerous components. Unit selling prices range from $245,000 to $1,670,000, and are quoted inclusive of installation. The installation process does not involve changes to the features of the equipment to perform to specifications. Cullumber has the following arrangement with Bonita Inc. Bonita purchases equipment from Cullumber on May 2, 2023, for a price of $1,032,000 and contracts with Cullumber to install the equipment. Cullumber charges the same price for the equipment irrespective of whether it does the installation or not. Using market data, Cullumber determines that the installation service is estimated to have a fair value of $43,000. The cost of the equipment is $700,000. Bonita is obligated to pay Cullumber the $989,000 on delivery of the equipment and the balance on the completion of the installation. Prepare any journal entries for Cullumber on May 2, June 1, and September 30, 2023. (Credit account titles are automatically indented when the amount is entere in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation May 2, 2023 No Entry No Entry Debit Credit June 1, 2023 Accounts Receivable 1720 Cullumber delivers the equipment on June 1, 2023, and completes the installation of the equipment on September 30, 2023. Assume that the equipment and the installation are two distinct performance obligations that should be accounted for separately. (a) Cash Sales Revenue (To record sales) June 1, 2023 Cost of Goods Sold 989000 990720 700000 Your answer is correct. Inventory (To record cost of goods sold) Allocate the transaction price of $1,032,000 among the performance obligations of the contract. Assume Cullumber follows IFRS. (Round percentage allocations to 2 decimal places, e.g. 12.25% and final answers to O decimal places, e.g. 5,275.) September 30,2023 Cash 43000 Delivery equipment $ Installation 990720 41280 Sales Revenue Accounts Receivable 700000 41280 1720