Exercise 18-11
Stellar Windows manufactures and sells custom storm windows for three-season porches. Stellar also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Stellar enters into the following contract on July 1, 2017, with a local homeowner. The customer purchases windows for a price of $2,300 and chooses Stellar to do the installation. Stellar charges the same price for the windows irrespective of whether it does the installation or not. The installation service is estimated to have a standalone selling price of $590. The customer pays Stellar $2,080 (which equals the standalone selling price of the windows, which have a cost of $1,160) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2017, Stellar completes installation on October 15, 2017, and the customer pays the balance due.
Stellar estimates the standalone selling price of the
installation based on an estimated cost of $440 plus a margin of
20% on cost.
Prepare the journal entries for Stellar in 2017.
Given uncertainty of finding skilled labor, Stellar is unable to
develop a reliable estimate for the standalone selling price of the
installation.
Prepare the journal entries for Stellar in 2017
Exercise 18-11 Stellar Windows manufactures and sells custom storm windows for three-season porches. Stellar also provides...
Vaughn Windows manufactures and sells custom storm windows for three-season porches. Vaughn also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Vaughn enters into the following contract on July 1, 2017, with a local homeowner. The customer purchases windows for a price of $2,400 and chooses Vaughn to do the installation. Vaughn charges the same price for the windows irrespective of whether it...
Pearl Windows manufactures and sells custom storm windows for three-season porches. Pearl also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Pearl enters into the following contract on July 1, 2020, with a local homeowner. The customer purchases windows for a price of $2,360 and chooses Pearl to do the installation. Pearl charges the same price for the windows irrespective of whether it...
Vaughn Windows manufactures and sells custom storm windows for three-season porches. Vaughn also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Vaughn enters into the following contract on July 1, 2017, with a local homeowner. The customer purchases windows for a price of $2,410 and chooses Vaughn to do the installation. Vaughn charges the same price for the windows irrespective of whether it...
Sunland Windows manufactures and sells custom storm windows for three-season porches. Sunland also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Sunland enters into the following contract on July 1, 2020, with a local homeowner. The customer purchases windows for a price of $2,340 and chooses Sunland to do the installation. Sunland charges the same price for the windows irrespective of whether it...
Sarasota Windows manufactures and sells custom storm windows for three-season porches. Sarasota also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Sarasota enters into the following contract on July 1, 2017, with a local homeowner. The customer purchases windows for a price of $2,280 and chooses Sarasota to do the installation. Sarasota charges the same price for the windows irrespective of whether it...
Wildhorse Windows manufactures and sells custom storm windows for three-season porches. Wildhorse also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Wildhorse enters into the following contract on July 1, 2020, with a local homeowner. The customer purchases windows for a price of $2,400 and chooses Wildhorse to do the installation. Wildhorse charges the same price for the windows irrespective of whether it...
Exercise 18-11 (Part Level Submission) Ayayai Windows manufactures and sells custom storm windows for three-season porches. Ayayai also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Ayayai enters into the following contract on July 1, 2020, with a local homeowner. The customer purchases windows for a price of $2,280 and chooses Ayayai to do the installation. Ayayai charges the same price for the...
Windsor Windows manufactures and sells custom storm windows for enclosed porches. Windsor also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be provided by other vendors. Windsor enters into the following contract on June 1, 2018, with a local homeowner. The customer purchases windows for a price of $4,700 and chooses Windsor to do the installation. Windsor charges the same exact price for the windows irrespective of whether...
Question 22 Vaughn Windows manufactures and sells custom storm windows for enclosed porches. Vaughn also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be provided by other vendors. Vaughn enters into the following contract on June 1, 2021, with a local homeowner. The customer purchases windows for a price of $5,180 and chooses Vaughn to do the installation. Vaughn charges the same price for the windows irrespective of...
Testbank Exercise 127 Blue Windows manufactures and sells custom storm windows for enclosed porches. Blue also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be provided by other vendors. Blue enters into the following contract on June 1, 2021, with a local homeowner. The customer purchases windows for a price of $5,540 and chooses Blue to do the installation. Blue charges the same price for the windows irrespective...