Arrow Co. entered Into a contract with a customer for $500,000. The contract is for the...

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Arrow Co. entered Into a contract with a customer for $500,000. The contract is for the dellivery of equipment and a 3- year service maintenance contract for the equipment. Arrow sells separately the equlpment for a selling price of $482,000, and the maintenance contract for three years for $143,400. The equipment was delivered on 1 June 1 20X1. Arrow has a 30 November year-end. Requlred: Prepare the journal entries required to record the revenue related to this contract during the period 1 June 20X1 to 30 November 20X1. (If no entry Is requlred for a transactlon/event, select "No Journal entry required" In the first account fleld. Round percentage answers to nearest whole percent. Round final answer to the nearest whole dollar. ) View transaction list Journal entry worksheet 1 2 > Record the contract for delivery of equipment. Note: Enter debits before credits. Date General Journal Debit Credit 1 June 20X1 Accounts receivable 625,400 Revenue-Equipment 380,920 Contract liability 15,774 Record entry Clear entry View general journal View transaction list Journal entry worksheet 2 > Record the liability related to the contract. Note: Enter debits before credits. Date General Journal Debit Credit 30 November 20X1 Contract liability 2,629 Revenue-Maintenance contract 2,629 Record entry Clear entry View general journal Arrow Co. entered Into a contract with a customer for $500,000. The contract is for the dellivery of equipment and a 3- year service maintenance contract for the equipment. Arrow sells separately the equlpment for a selling price of $482,000, and the maintenance contract for three years for $143,400. The equipment was delivered on 1 June 1 20X1. Arrow has a 30 November year-end. Requlred: Prepare the journal entries required to record the revenue related to this contract during the period 1 June 20X1 to 30 November 20X1. (If no entry Is requlred for a transactlon/event, select "No Journal entry required" In the first account fleld. Round percentage answers to nearest whole percent. Round final answer to the nearest whole dollar. ) View transaction list Journal entry worksheet 1 2 > Record the contract for delivery of equipment. Note: Enter debits before credits. Date General Journal Debit Credit 1 June 20X1 Accounts receivable 625,400 Revenue-Equipment 380,920 Contract liability 15,774 Record entry Clear entry View general journal View transaction list Journal entry worksheet 2 > Record the liability related to the contract. Note: Enter debits before credits. Date General Journal Debit Credit 30 November 20X1 Contract liability 2,629 Revenue-Maintenance contract 2,629 Record entry Clear entry View general journal

Answer rating: 100% (QA)

Step 1 The contract of 500000 has two separate perfo... View the full answer