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-Dominant- [34]
3 years ago
5

Exercise 18-3 On May 1, 2017, Headland Inc. entered into a contract to deliver one of its specialty mowers to Kickapoo Landscapi

ng Co. The contract requires Kickapoo to pay the contract price of $913 in advance on May 15, 2017. Kickapoo pays Headland on May 15, 2017, and Headland delivers the mower (with cost of $563) on May 31, 2017. (a) Prepare the journal entry on May 1, 2017, for Headland. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit May 1, 2017 (b) Prepare the journal entry on May 15, 2017, for Headland. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit May 15, 2017 (c) Prepare the journal entry on May 31, 2017, for Headland. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit May 31, 2017 (To record sales) (To record cost of goods sold)
Business
1 answer:
olga2289 [7]3 years ago
4 0

Explanation:

The journal entries are as follows

May 1

No journal entry is required

May 15

Cash Dr $913

     To Unearned revenue $913

(Being the advance cash is received)

May 31

Unearned revenue $913

        To Service revenue $913

(Being the unearned revenue is recorded)

May 31

Cost of goods sold Dr $563

     To Inventory $563

(Being the cost is recorded)

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