Exercise 18-30 (Part Level Submission) Nash Financial Services performs bookkeeping and tax-reporting services to startup companies in the Oconomowoc area. On January 1, 2017, Nash entered into a 3-year service contract with Walleye Tech. Walleye promises to pay $9,100 at the beginning of each year, which at contract inception is the standalone selling price for these services. At the end of the second year, the contract is modified and the fee for the third year of services is reduced to $7,300. In addition, Walleye agrees to pay an additional $18,200 at the beginning of the third year to cover the contract for 3 additional years (i.e., 4 years remain after the modification). The extended contract services are similar to those provided in the first 2 years of the contract. (a) Your answer is correct. Prepare the journal entries for Nash in 2017 and 2018 related to this service contract. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Jan. 1, 2017 cash Debit Credit 9100 9100 Unearned Service Revenue Dec. 31, 2017 Unearned Service Revenue 9100 Service Revenue Jan. 1, 2018 cash Unearned Service Revenue Dec. 31, 2018 Unearned Service Revenue Service Revenue 9100 9100 9100 9100 9100 (b) Your answer is correct. Prepare the journal entries for Nash in 2019 related to the modified service contract, assuming a prospective approach. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Jan. 1, 2019 Cash Unearned Service Revenue Dec. 31, 2019 Unearned Service Revenue Service Revenue Debit 25500 6375 Credit 25500 6375 (c) Repeat the requirements for part (b), assuming Nash and Walleye agree on a revised set of services (fewer bookkeeping services but more tax services) in the extended contract period and the modification results in a separate performance obligation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit