The U.S. Department of Justice contracted with Kelly University, a private, nonprofit university, to utilize its...

   

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The U.S. Department of Justice contracted with Kelly University, a private, nonprofit university, to utilize its geographic information systems department to perform mapping and security analysis of several major federal facilities. The U.S. Department of Justice will receive the benefit of the mapping and related reports, and the total contract amount is $7,500,000. Performance obligations are described in the contract, and Kelly University will bill on a percentage basis at each of three contract milestones. Record the journal entries for the following events and transactions. 1. The contract is signed on August 15. 2. Kelly University bills 30% of the contract for work performed on September 15. 3. On October 1, DOJ pays the amount billed on September 15. 4. Kelly University bills 45% of the contract for work performed on January 15. 5. On February 1, DOJ pays the amount billed on January 15. 6. Kelly University bills the final 25% of the contract for work performed on April 15. 7. On May 1, DOJ pays the amount billed on April 15. Account 1. To record the contract signing 2. To record the September 15 billing. 4. To record the January 15 billing. 5. To record the receipt of the DOJ payment for work through January 15. 6. To record the April 15 billing. 3. To record the receipt of the DOJ payment for work through September 15. > 7. To record the receipt of the DOJ payment for work through April 15. > > > < < < > > Debit 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Credit 0 0 0 0 0 0 0 0 0 0 0 0 0 0 The U.S. Department of Justice contracted with Kelly University, a private, nonprofit university, to utilize its geographic information systems department to perform mapping and security analysis of several major federal facilities. The U.S. Department of Justice will receive the benefit of the mapping and related reports, and the total contract amount is $7,500,000. Performance obligations are described in the contract, and Kelly University will bill on a percentage basis at each of three contract milestones. Record the journal entries for the following events and transactions. 1. The contract is signed on August 15. 2. Kelly University bills 30% of the contract for work performed on September 15. 3. On October 1, DOJ pays the amount billed on September 15. 4. Kelly University bills 45% of the contract for work performed on January 15. 5. On February 1, DOJ pays the amount billed on January 15. 6. Kelly University bills the final 25% of the contract for work performed on April 15. 7. On May 1, DOJ pays the amount billed on April 15. Account 1. To record the contract signing 2. To record the September 15 billing. 4. To record the January 15 billing. 5. To record the receipt of the DOJ payment for work through January 15. 6. To record the April 15 billing. 3. To record the receipt of the DOJ payment for work through September 15. > 7. To record the receipt of the DOJ payment for work through April 15. > > > < < < > > Debit 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Credit 0 0 0 0 0 0 0 0 0 0 0 0 0 0