! On July 1. Wiggins Associates enters into a contract to provide consulting services to Pennsylvania University (PU). The contract isanticipated to lest four months and is intended to achieve significant cost savings at the university. The contract stipulates that PU willpay Wiggins $30O.000 at the end of each month, and, if total cost savings reach a specific target. PU will pay an additional $25,000 toWiggins at the end of the contract Wiggins estimates a 80% chance that cost savings will reach the targetAssume that Wiggins estimates uncertain consideration as the most likely amountRequired:Do the following for Wigginsa. Prepare the journal entry on July 31 to record the first month of revenue under the contract,b. Assuming totol cost savings exceed the target, prepare the journal entry, if ony, on October 31 to record recelpt of the $25,000bonus (ignoret the normol October payment of $30.000)c. Assuming total cost sovings do not reach the target, prepare the journal entry. if any. on October 31 to record failure to recoive the$25.000 bonus (ignore the nomal October payment of $30,000).(For all requirements, If no entry is required for a transaction/event, select "No journel entry required" in the first account field.)

Journal entry is the process of documenting commercial transactions for the first time in the books…

On July 1 Wiggins Associetes enters into a contract to provide consulting services to Pennsylvenia University (PU). The contract is anticipated to lest fout imionths and is intended to achieve significant cost savings at the university. The contract stipulates that PU wl pay Wiggins $30 000 at the end of each month and, If total cost savings reach a specific target. PU will pay an additional S25,000 to Wiggins at the end of the contract Wiggins estimates a 80% chance that cost savings will reach the target Assume that Wiggins estimates uncertain consideration as the most likely amount Required: Do the folowing for Wiggins a. Prepare the journal entry on July 31 to record the first month of revenue under the contract b. Assuming totol cost sevings exceed the target prepare the journal entry, if any, on October 31 to record recelot of the $25,000 bonus (gnore the normel October payment of $30.000) c. Assumng totel cost sevings do not reach the target, prepare the journel entry if any on October 31 to record failure to receve the $25.000 bonus (ignore the nomal October payment of $30.00O). (For all requirements, If no entry is required for e transaction/event, select "No journal entry required" in the first account fieid.)