Prepare the journal entries for Sheridan in 2025 and 2026 related to this service contract. (List all debit entries before credit entries. 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 O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit heridan Financial Services performs bookkeeping and tax-reporting services to startup companies in the Hiawatha area. On January 1, 2025, Sheridan ent 3-year service contract with Sunland Tech. Sunland promises to pay $16,200 at the beginning of each year, which at contract inception is the standalone s rice for these services. At the end of the second year, the contract is modified and the fee for the third year of services is reduced to $14,000. In addition, S grees to pay an additional $35,000 at the beginning of the third year to cover the contract for 3 additional years (i.e., 4 years remain after the modification xtended contract services are similar to those provided in the first 2 years of the contract. Prepare the journal entries for Sheridan in 2027 related to the modified service contract, assuming a prospective approach. (List all debit entries before credit entries. 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 O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Repeat the requirements for part (b), assuming Sheridan and Sunland agree on a revised set of services (fewer bookkeeping services but more tax services) in the three (3) year extended contract period and the modification results in a separate performance obligation. (List all debit entries before credit entries. 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 O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit
Prepare the journal entries for Sheridan in 2025 and 2026 related to this service contract. (List all debit entries before credit entries. 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 O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit heridan Financial Services performs bookkeeping and tax-reporting services to startup companies in the Hiawatha area. On January 1, 2025, Sheridan ent 3-year service contract with Sunland Tech. Sunland promises to pay $16,200 at the beginning of each year, which at contract inception is the standalone s rice for these services. At the end of the second year, the contract is modified and the fee for the third year of services is reduced to $14,000. In addition, S grees to pay an additional $35,000 at the beginning of the third year to cover the contract for 3 additional years (i.e., 4 years remain after the modification xtended contract services are similar to those provided in the first 2 years of the contract. Prepare the journal entries for Sheridan in 2027 related to the modified service contract, assuming a prospective approach. (List all debit entries before credit entries. 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 O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Repeat the requirements for part (b), assuming Sheridan and Sunland agree on a revised set of services (fewer bookkeeping services but more tax services) in the three (3) year extended contract period and the modification results in a separate performance obligation. (List all debit entries before credit entries. 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 O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Prepare the journal entries for Sheridan in 2025 and 2026 related to this service contract. (List all debit entries before credit entries. 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 O for the amounts.
Record journal entries in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
Credit
heridan Financial Services performs bookkeeping and tax-reporting services to startup companies in the Hiawatha area. On January 1, 2025, Sheridan ent
3-year service contract with Sunland Tech. Sunland promises to pay $16,200 at the beginning of each year, which at contract inception is the standalone s
rice for these services. At the end of the second year, the contract is modified and the fee for the third year of services is reduced to $14,000. In addition, S
grees to pay an additional $35,000 at the beginning of the third year to cover the contract for 3 additional years (i.e., 4 years remain after the modification
xtended contract services are similar to those provided in the first 2 years of the contract.
Prepare the journal entries for Sheridan in 2027 related to the modified service contract, assuming a prospective approach. (List all debit entries before credit
entries. 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 O for the amounts. Record journal entries in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
Credit
Transcribed Image Text:Repeat the requirements for part (b), assuming Sheridan and Sunland agree on a revised set of services (fewer bookkeeping services but more tax services) in the
three (3) year extended contract period and the modification results in a separate performance obligation. (List all debit entries before credit entries. 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 O for the
amounts. Record journal entries in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
Credit
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