Exercise 18-30 **Please complete ALL parts listed below**

Cheyenne Financial Services performs bookkeeping and tax-reporting services to startup companies in the Oconomowoc area. On January 1, 2017, Cheyenne 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.

Part A: Prepare the journal entries for Cheyenne in 2017 and 2018 related to this service contract.

Part B: Prepare the journal entries for Cheyenne in 2019 related to the modified service contract, assuming a prospective approach.

Part C: Repeat the requirements for part (b), assuming Cheyenne 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.

Date Account Titles and Explanation Debit Credit