In December 2021, your company signed a 3 year contract to update Harrison Inc.'s 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%.

Prepare end of year adjusting entries, corrections, and any other necessary entries necessary to prepare accurate financial statements for 2021.