$($a$)$

$($b$)$

Prepare the journal entries for Richard in $2027$ related to the modified service contract, assuming a prospective approach. $($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. List all debit entries before credit entries. Record journal entries in the order presented in the problem.$)$

Date

Account Titles and Explanation

Debit

Credi

Cash

$25,300$

Unearned Servlce Revenue

Unearned Servlce Revenue

Service Revenue

$($c$)$

Repeat the requirements for part $($b$),$ assuming Richard and Sunny agree on a revised set of services $($fewer bookkeeping services but more tax services$)$ in the extended contract period and the modification results in a separate performance obligation. $($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. List all debit entries before credit entries. Record journal entries in the order presented in the problem.$)$

Date

Debit

Credi

$]$