HealthTech Ltd. is evaluating its revenue recognition practices for the year ending December 31, 20X1. The company signed a contract on January 1 to provide software development services for $600,000, with payment terms of 50% upfront and the remaining 50% upon completion in six months. By March 31, HealthTech had completed 40% of the project and billed the customer for the completed portion. By June 30, the company completed the remaining 60% of the project and recognized the remaining revenue. On December 31, HealthTech provided annual maintenance services worth $120,000, which were billed but not yet collected.

Required:

1. Prepare the journal entries for the revenue transactions during the year.
2. Calculate the total revenue recognized for the year ending December 31, 20X1.
3. Prepare the accounts receivable and unearned revenue balances as of December 31, 20X1.
4. Discuss the impact of the revenue recognition on the company’s financial statements and cash flow.