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Recording Revenue Under Different Repurchase Agreements On January 1, 2020, Miller Inc. sells equipment to Smith Inc. for $33,000. As stipulated in the revenue contract, Miller Inc. will buy back the equipment on December 31, 2020, for $35,310. The relevant interest rate a. Prepare the seller's journal entry on January 1, 2020. Date Account Name Cr. Jan. 1, 2020 Cash 33000 Accounts Receivable 33000 Dr. 0 0 Cr. 0 0 0 b. Prepare the seller's journal entry on December 31, 2020. Date Account Name Dr. Dec 31, 2020 Consideration Payable 35310 Cash 0 35310 To recognize interest. Dec 31, 2020 Interest Expense 2310 Cash 0 2310 To record payment. C. Assume instead that Miller has the option to buy back the equipment and the fair value of the equipment is expected to decline through 2020. How would the answers to parts a and b change (if at all)? Date Account Name Dr. Cr. Jan. 1, 2020 0 Dec 31, 2020 0 0 0 0 0 0 0 To recognize interest. Dec 31, 2020 0 0 0 0 0 To record payment. d. Assume instead that Smith has the option to require Miller to buy back the equipment after one year for $35,310 (an amount greater than the expected market value of the equipment at that time). How would the answers to parts a and b change (if at all)? Date Account Name Dr. Cr. Jan. 1, 2020 o 0 0 0 Dec. 31, 2020 0 0 0 0 To record interest. Dec 31, 2020 0 0 0 0 0 To record payment. Date Recording Revenue Under Different Repurchase Agreements On January 1, 2020, Miller Inc. sells equipment to Smith Inc. for $33,000. As stipulated in the revenue contract, Miller Inc. will buy back the equipment on December 31, 2020, for $35,310. The relevant interest rate i a. Prepare the seller's journal entry on January 1, 2020. Date Account Name Dr. Cr. Jan 1, 2020 Cost of Goods Sold 33000 0 0 33000 Cash Accounts Receivable b. Prepare tl Due from Consignee ember 31, 2020. Inventory Dr. Cr. Dec 31, 202 Prepaid Expense 35310 0 Contract Asset 35310 Prepaid Advertising Expense Accounts Payable Dec 31, 202 2310 0 Consideration Payable 2310 Deferred Revenue Liability to Smith Inc. Sales Revenue C. Assume ir n to buy back the equipment and the fair value of the equipment is expected to Service Revenue decline thro Commission Revenue Vers to parts a and b change (if at all)? Date Cost of Goods Sold Dr. Jan. 1, 2020 Advertising Expense 0 0 Interest Expense 0 Sales Commission Expense Dec. 31, 202 0 0 N/A 0 0 0 0 . Cr. 0 To recognize interest. Dec. 31, 2020 0 0 0 0 0 To record payment. d. Assume instead that Smith has the option to require Miller to buy back the equipment after one year for $35,310 (an amount greater than the expected market value of the equipment at that time). How would the answers to parts a and b change (if at all)? Date Account Name Dr. Jan. 1, 2020 , Cr. . 0 0 0 0 Dec 31, 2020 0 0 0 0 To record interest. Dec. 31, 2020 0 0 0 0 0 0 To record payment. Recording Revenue Under Different Repurchase Agreements On January 1, 2020, Miller Inc. sells equipment to Smith Inc. for $33,000. As stipulated in the revenue contract, Miller Inc. will buy back the equipment on December 31, 2020, for $35,310. The relevant interest rate a. Prepare the seller's journal entry on January 1, 2020. Date Account Name Cr. Jan. 1, 2020 Cash 33000 Accounts Receivable 33000 Dr. 0 0 Cr. 0 0 0 b. Prepare the seller's journal entry on December 31, 2020. Date Account Name Dr. Dec 31, 2020 Consideration Payable 35310 Cash 0 35310 To recognize interest. Dec 31, 2020 Interest Expense 2310 Cash 0 2310 To record payment. C. Assume instead that Miller has the option to buy back the equipment and the fair value of the equipment is expected to decline through 2020. How would the answers to parts a and b change (if at all)? Date Account Name Dr. Cr. Jan. 1, 2020 0 Dec 31, 2020 0 0 0 0 0 0 0 To recognize interest. Dec 31, 2020 0 0 0 0 0 To record payment. d. Assume instead that Smith has the option to require Miller to buy back the equipment after one year for $35,310 (an amount greater than the expected market value of the equipment at that time). How would the answers to parts a and b change (if at all)? Date Account Name Dr. Cr. Jan. 1, 2020 o 0 0 0 Dec. 31, 2020 0 0 0 0 To record interest. Dec 31, 2020 0 0 0 0 0 To record payment. Date Recording Revenue Under Different Repurchase Agreements On January 1, 2020, Miller Inc. sells equipment to Smith Inc. for $33,000. As stipulated in the revenue contract, Miller Inc. will buy back the equipment on December 31, 2020, for $35,310. The relevant interest rate i a. Prepare the seller's journal entry on January 1, 2020. Date Account Name Dr. Cr. Jan 1, 2020 Cost of Goods Sold 33000 0 0 33000 Cash Accounts Receivable b. Prepare tl Due from Consignee ember 31, 2020. Inventory Dr. Cr. Dec 31, 202 Prepaid Expense 35310 0 Contract Asset 35310 Prepaid Advertising Expense Accounts Payable Dec 31, 202 2310 0 Consideration Payable 2310 Deferred Revenue Liability to Smith Inc. Sales Revenue C. Assume ir n to buy back the equipment and the fair value of the equipment is expected to Service Revenue decline thro Commission Revenue Vers to parts a and b change (if at all)? Date Cost of Goods Sold Dr. Jan. 1, 2020 Advertising Expense 0 0 Interest Expense 0 Sales Commission Expense Dec. 31, 202 0 0 N/A 0 0 0 0 . Cr. 0 To recognize interest. Dec. 31, 2020 0 0 0 0 0 To record payment. d. Assume instead that Smith has the option to require Miller to buy back the equipment after one year for $35,310 (an amount greater than the expected market value of the equipment at that time). How would the answers to parts a and b change (if at all)? Date Account Name Dr. Jan. 1, 2020 , Cr. . 0 0 0 0 Dec 31, 2020 0 0 0 0 To record interest. Dec. 31, 2020 0 0 0 0 0 0 To record payment