AGI Software Inc. entered into a $250,000 contract with McDonald Company to transfer a software license, perform the related installation service and provide support for a three-year period. AGI sells the license to the software, installation service and support as a bundle of product for a lump-sum price. The installation service and support could be performed by other entities, and there is a ready market for those services. The stand-alone prices for software, installation service and support service were $160,000, $20,000 and $30,000 per year (i.e., total of $90,000 for three years) respectively.

The contract was finalized on March 1, 2020. AGI delivered the software license on April 1, 2020 when its title was transferred to McDonald. AGI completed installation on May 15, 2020 at which point the support service will begin covering a period of three years.

Upon the installation of software on May 15, McDonald paid for the software, installation service and one-year support service.

AGI Softwares fiscal years ends on December 31.

1. Make the appropriate journal entries on March 1, April 1, May 15 and December 31 in the books of AGI.