Please help with questions: E17-5, and E17-6

Thank you.

E17-5 LO 17.5 Determine the Transaction Price On January 1, 2019, Loud Company enters into a 2-year contract with a cus- tomer for an unlimited talk and 5 GB data wireless plan for $65 per month. The contract includes a smartphone D for which the customer pays $299. Loud also sells the smartphone and monthly service plan separately, charging $649 for the smartphone and $65 for the monthly service for the unlimited talk and 5 GB data wireless plan. SHOW ME HOW Required: 1. Calculate the transaction price for the smartphone and unlimited talk and 5 GB data wireless plan assuming that Loud allocates consideration based on stand-alone prices. 2. Record the initial journal entry for Loud Company's sale of a 2-year contract on January 1, 2019, and the monthly journal entry. E17-6 Contract Modification Assume the same facts as in E17-5. On July 1, 2019, the customer realizes that she needs LO 17.2 less data in her wireless plan and downgrades to the unlimited talk and 2 GB data plan for the remaining term of 10 17.6 the contract (18 months). The unlimited talk and 2 GB data plan is priced at $55 per month. The $55 per month is Loud's current stand-alone price for this plan that is available to all customers. Required: 1. How should Loud account for this contract modification? 2. Provide Loud's new monthly revenue recognition journal entry. E17-7 Contract Modification Assume the same facts as in E17-5 and ignore E17-6. On July 1, 2019, the customer LO 17.2 realizes that she needs a text messaging plan and adds an unlimited text messaging plan for the remaining term of LO 17.6 the contract (18 months). The unlimited text messaging plan is priced at $15 per month. This is the current pric- customers