Ivey Designs provides internet hosting services to customers who purchase annual maintenance contracts. Ivey charges $1,200 per

Question:

Ivey Designs provides internet hosting services to customers who purchase annual maintenance contracts. Ivey charges $1,200 per year. On September 1, Durbin Farms signs a contract with Ivey and pays $1,200.
Required
Prepare
a) The September 1 entry that Ivey makes to record the contract
b) The December 31 entry to recognize Ivey's revenues earned to date.