Rupert Co. offers lawn care and ground maintenance services to corporations. Customers sign a three-year contract for $43,200. Payments can be made all upfront with 10% discount or in equal monthly instalment. Company A signs a contract on January 1 and chooses to pay upfront. Company B signs on January 1 and chooses to pay on a monthly basis.

Prepare journal entries for Rupert on January 1 and January 30. Rupert prepares adjusting entries to recognize revenues and expenses every month.