Joseph Finandial Services performs bookkeeping and tax$-$reporting services to startup companies in the Oconomowoc area. On January $1,2025,$ Joseph entered into a $3-$year service contract with Vaughn Tech Vaughn promises to pay $$10,200$ at the beginning of cach year, which at contract inception is the standalone selling price for these services. At the end of the second year, the contract is modifed and the fee for the third year of services is reduced to $$8,000.$ In addition, Vaughn agrees to pay an additional $$20,400$ at the beginning of the third year to cover the contract for $3$ additional years $($i$.$e$.4$ years remain after the modifcation$).$ The extended contrect services are similar to those provided in the first $2$ years of the contract.

$($a$)$

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Prepare the journal entries for Joseph in $2025$ and $2026$ related to this service contract. $($Credit account vitles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No entry" for the account titles and enter $0$ for the amounts. List all debit entries before credit entries. Record journat entries in the order presented in the problem:$)$

$($b$)$

Prepare the joumal entries for Joseph in $2027$ related to the modified sen account titles are automatically indented when the amount is entered. Do not indent manually if no entry is required, select $"$No entry" for the account tilles and enter ofor the amounts. List all debit entries before credit entries. Record joumal entries in the order presented in the problem$)$

Date

Account Titles and Explanation

Debit