BBB Company was organized in 2020. The firm entered into a contract with a private

company to do the following: bookkeeping activities, preparation of monthly and annual

financial statements and annual tax returns. The annual fee is P100,000 for bookkeeping

services, P5,000 for monthly reports and P50,000 for annual report and tax return.

Determine the following:

a. Revenue to be recognized on 2020

b. Entries to record the transaction