7. Exercise 18 - 4 ( Part Level Submission ) Tyler Financial Services performs bookkeeping and tax - reporting services to startup companies in the Oconomowoc area . On January 1 , 2015, Tyler Entered into a 3 - year Service contract with Walleye Tech. Walleye promises to pay $ 10, Odd at the beginning of each year , which at contract inception 15 the standalone Seling Price for these services . At the End of the second year , the contract is modified and the fee for the third year of services is reduced to $8, 000 . In addition , Walleye agrees to pay an additional $ 20, 000 at the beginning of the third year to cover the contract for 3 additional years li . E .. 4 Years remain after the modification ) . The Extended contract SERVICES are Similar to those provided in the first 2 Years of the contract . ( a) Prepare the journal Entries for Tyler in 2015 and 2015 related to this service contract . ( 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 ! for the amounts .]