On May $1,20$x$4,$ Intermediate Accounting Consulting, Inc. enters into a contract offering

variable consideration. The contract pays $$1,000$ per month for six months of continuous

consulting services to be paid at the end of each month. In addition, there is a $60\%$ chance the

contract will pay an additional $$3,000$ and a $15\%$ chance the contract will pay an additional

$$4,000$ depending on the outcome of the contract. There is a $25\%$ chance of no bonus being

awarded. The company concludes that this contract qualifies for revenue recognition over time.

Assume the company estimates for consideration as the expected value.

a$.$ Calculate the expected value of the bonus.

b$.$ Prepare the journal entry on May $31.$