In December 2021, Gordon and Mega-Manufacturing signed a 3 year contract for Gordon to update Megas computer networks starting in 2022. The contract calls for annual payments of $20,000 due on January 1 of each year, with the first payment due on 1/1/22. The implicit rate of interest used by Gordon in pricing this contract was 8%.

For 2021 would the contract signing be the only required journal entry? Is the entry below correct?

Accounts Receivable 20,000

Unearned Revenue 20,000