Question 1 Simpson Bus Ltd ("Simpson") provides on-campus bus services for universities. On 1 July 2020, it entered into a one-year contract with Boly University ("Boly") to operate three bus lines traveling throughout the campus. Under the contract, Simpson will be paid $100,000 on the last day of each month. In addition, Simpson will receive a bonus payment of $120,000 at the end of each six-month period, provided it remains free of accidents. On 1 July 2020, based on historical experience, Simpson estimated that there is a 75% chance that it will remain free of accidents for the entire year. On 2 September 2020, three of the most senior drivers at Simpson abruptly left. As a result, Simpson had to hire inexperienced drivers to fill the vacant positions. Consequently, Simpson revised its estimate to a 30% chance that it would earn the semiannual bonus. On 31 December 2020, Boly confirmed that there was no accident between July and December 2020, so Simpson would be entitled to the semiannual bonus. Simpson bases estimates of variable consideration on the expected value it expects to receive. Required: (a) Prepare Simpson's July 2020 journal entry to account for the revenue earned from 1 July - 31 July 2020. (6 marks) (b) Prepare Simpson's September 2020 journal entry to record the revenue earned from 1 September 2020 - 30 September 2020, as well as any appropriate adjustments to the revenue presumed already recorded as earned from 1 July 2020 - 31 August 2020. (8 marks) (c) Prepare Simpson's December 2020 journal entry to account for the revenue earned from 1 December 2020 - 31 December 2020, as well as any necessary adjustments to revenue. (6 marks)