Since 1970, Super Rise, Inc., has provided maintenance services for elevators. On January 1, 2021, Super Rise obtained a contract to maintain an elevator in a 90-story building in New York City for 10 months with a fixed payment of $110,000. The contract specifies an additional $55,000 at the end of the 10 months if there is no unexpected delay, stoppage, or accident during the year. Super Rise estimates this variable consideration as the most likely amount it will receive.**Required:**1. Assume that Super Rise anticipates it will earn the performance bonus, but there is high uncertainty about its estimate due to unfamiliarity with the building and uncertainty about access to the elevators and related equipment. Prepare the journal entry Super Rise would record on January 1.2. Assume the same facts as requirement 1. Additionally, on May 31, Super Rise determines it has sufficient experience to estimate accurately that it will earn the performance bonus, concluding it is likely. Prepare the journal entry Super Rise would record on May 31 to recognize May revenue and any necessary revisions in its estimated bonus receivable.**Instructions:**- Complete this question by entering your answers in the tabs marked "Required 1" and "Required 2."**Notes:**Assume Super Rise anticipates it will earn the performance bonus, but high uncertainty exists about its estimate due to unfamiliarity with the building and uncertainty about access to elevators and related equipment. Prepare the journal entry Super Rise would record on January 1.*(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)*

Journal entry is the process of documenting commercial transactions for the first time in the books of accounts. Journal entries form the basis for other accounting tasks such as ledger account preparation, trial balances, financial statements, and so on. The initial recording of all monetary business transactions in a systematic way is known as journal entries. They are listed in chronological sequence according to when the incident occurred. Adjusting entries, closing entries, and normal entries are all examples of diary entries.For starters, keeping orderly records of your transactions aids in the organization of your company's information. Accountants keep track of data in a precise order and manner. This allows them to quickly locate information while also keeping a watch out for any potential accounting problems. Second, the initial step in the recording procedure is journal entries. As a result, you'll need them to generate further financial statements in the future. The income statement, cash flow statement, and balance sheet are all dependent on the first journal entries. Answer 1) Date Particulars Debit Credit 1 Jan Cash a/c $110,000 To Deferred Revenue a/c $110,000 [Being Cash Received] Answer 2) Date Particulars Debit Credit 31 May Deferred Revenue a/c ($110,000/10) 11,000 To Service revenue 11,000 [Being revenue recognized] 31 May Bonus receivable a/c ($55,000/10) $5,500 To Service Revenue a/c $5,500 [Being bonus receivable recorded]