Shemsoft Software Technicians recently accepted a contract to develop an inventory management system for Chez and Company. Shemsoft is required to complete the installation of the new

inventory management system in two years. Shemsoft provided the following contract information.

$($Click the icon to view the contract information.$)$

Requirement

Prepare the journal entries required for each year of the contract assuming Shemsoft uses the percentage$-$of$-$completion method and the cost$-$to$-$cost approach for measuring progress. $($Record

debits first, then credits. Exclude explanations from any journal entries.$)$