On 30 May 2018 Big Town Toyota enters into a contract with Joe's Landscape Supplies to...

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On 30 May 2018 Big Town Toyota enters into a contract with Joe's Landscape Supplies to sell an earthmover and a provide mechanical services for one year for a total price of $1 100 090, paid when the contract is signed. If sold separately the selling price of the Earthmover is $1 099 000 and the mechanical service is $3 000. The cost to Big Town Toyota to purchase the earthmover on 1 May 2018 is $800 000. The legal title to the earthmover passes to Joe's Landscape Supplies on receipt of the payment and the mechanical services also start on the same date. Required Show all the journal entries for the year ended 30 June 2017 and 30 June 2018 to record the above transactions. On 30 May 2018 Big Town Toyota enters into a contract with Joe's Landscape Supplies to sell an earthmover and a provide mechanical services for one year for a total price of $1 100 090, paid when the contract is signed. If sold separately the selling price of the Earthmover is $1 099 000 and the mechanical service is $3 000. The cost to Big Town Toyota to purchase the earthmover on 1 May 2018 is $800 000. The legal title to the earthmover passes to Joe's Landscape Supplies on receipt of the payment and the mechanical services also start on the same date. Required Show all the journal entries for the year ended 30 June 2017 and 30 June 2018 to record the above transactions.

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