Velocity, a consulting firm, enters into a contract to help Eurger Boy, a fast$-$food restaurant, design a marketing strategy to compete with Burger King. The contract spans eight months. Burger Boy promises to pay $$45,000$ at the end of each month. At the end of the contract, Velocity either will give Burger Boy a refund of $$15,000$ or will be entitled to an additional $$15,000$ bonus, depending on whether sales at Burger Boy at year$-$end have increased to a target level. At the inception of the contract, Velocity estimates an $80\%$ chance that it will earn the $$15,000$ bonus and calculates the contract price based on the expected value of future payments to be received. At the start of the fifth month, circumstances change, and Velocity revises to $60\%$ its estimate of the probability that it will eam the bonus. At the end of the contract, Velocity receives the additional consideration of $$15,000.$

Required:

Prepare the journal entry to record revenue at the end of each month for the first four months of the contract

Prepare the journal entry that the Velocity Company would record at the start of the fith month to recognize the change in estimate associated with the reduced likelihood that the $$15,000$ bonus will be received.

Prepare the journal entry to record the revenue at the end of each month for the second four months of the contract.

Prepare the Journal entry after elght months to record recelpt of the $$15,000$ cash bonus.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Yow transaction list

Joumal entry worksheet

Recond the entry to record revenue at the end of each month for the first four

months of the contract.

Noses Enlecr debits before credies.

Rocord onty

Glear entry