On April 1, Shamrock, Inc. was established. These transactions were completed during the month. 1. Stockholders invested $29,100 cash in the company in exchange for common stock. 2. Paid $760 cash for April office rent. 3. Purchased office equipment for $3,390 cash. 4. Purchased $330 of advertising in the Chicago Tribune, on account. 5. Paid $540 cash for office supplies. 6. Performed services worth $11,700. Cash of $3,200 is received from customers, and the balance of $8,500 is billed to customers on account. 7. Paid $390 cash dividends. 8. Paid Chicago Tribune amount due in transaction (4). 9. Paid employees’ salaries $1,410. 10. Received $8,500 in cash from customers billed previously in transaction (6).

Exercise 18-15 sheffield appliance center is an experienced home appliance dealer. sheffield appliance center also offers a number of services for the home appliances that it sells. assume that sheffield appliance center sells ovens on a standalone basis. sheffield appliance center also sells installation services and maintenance services for ovens. however, sheffield appliance center does not offer installation or maintenance services to customers who buy ovens from other vendors. pricing for ovens is as follows. oven only $790 oven with installation service 850 oven with maintenance services 970 oven with installation and maintenance services 990 in each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $180. additionally, the incremental amount charged by sheffield appliance center for installation approximates the amount charged by independent third parties. ovens are sold subject to a general right of return. if a customer purchases an oven with installation and/or maintenance services, in the event sheffield appliance center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $790. assume that a customer purchases an oven with both installation and maintenance services for $990. (b) indicate the amount of revenue that should be allocated to the oven, the installation, and to the maintenance contract.