Jameson Financial Services performs bookkeeping and tax-reporting services to startup companies in the Oconomowoc area. On January 1, 2020, Jameson entered into a 3-year service contract with Andersons Tech. Andersons promises to pay $10,700 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 $8,900. In addition, Andersons agrees to pay an additional $21,400 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. Prepare the journal entries for Jameson in 2020 and 2021 related to this service contract.

B. Prepare the journal entries for Jameson in 2022 related to the modified service contract, assuming a prospective approach

C. Repeat the requirements for part (b), assuming Jameson and Andersons 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