Since 1970, Super Rise, Incorporated, has provided maintenance services for elevators. On January 1, 2024, Super Rise obtains a contract to maintain an elevator in a 90-story building in New York City for 10 months and receives a fixed payment of $86,000. The contract specifies that Super Rise will receive an additional $43,000 at the end of the 10 months if there is no unexpected delay, stoppage, or accident during the year. Super Rise estimates variable consideration to be the most likely amount it will receive.

Required:

1. Assume the same facts as requirement 1. In addition, assume that, on May 31, Super Rise determines that it does not need to spend more than two hours on any given day to operate the elevator safely because the clients elevator is relatively new. Therefore, Super Rise believes that unexpected delays are very unlikely. Prepare the journal entry Super Rise would record on May 31 to recognize May revenue and any necessary revision in its estimated bonus receivable.

Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Assume the same facts as requirement 1 . In addition, assume that, on May 31, Super Rise determines that it does not need to spend more than two hours on any given day to operate the elevator safely because the client's elevator is relatively new. Therefore, Super Rise believes that unexpected delays are very unlikely. Prepare the journal entry Super Rise would record on May 31 to recognize May revenue and any necessary revision in its estimated bonus receivable. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field