Assume the remodeling of a cafeteria is begun by a contractor during the current year and that upon completion, 15 percent of total project costs is to be retained until the contractor’s work has been inspected and accepted. Prepare the journal entries for the following events:

a. The contractor submits a bill amounting to the full contract price of $100,000; final inspection and acceptance have not been completed.

b. Payment is made to the contractor less 15 percent retainage.

c. Final inspection is satisfactorily completed and the board of education accepts the remodeling project;

payment is made.