A food service vendor is looking to sign a contract with their client. The vendor is proposing remodeling the client's dining hall for $100,000. In return the vendor is asking the client for a 5 year contract. If the vendor breaks the contract the client has to pay a penalty of $20,000 per year remaining on the contract.

Record the journal entries when the contract is signed from the vendor's perspective and the client's perspective. Keep in mind ASC 606 and the new revenue recognition standards by FASB.