Veras Bus Transportation provides on$-$campus bus services for universities. On January $1,$ it enters into a one$-$year contract with Moose

University to operate five bus lines traveling throughout the campus. Under the contract, Veras will be paid $$114,000$ on the last day of

each month. In addition, Veras will receive an additional $$134,000$ at the end of each six$-$month period, provided it remains free of

accidents.

On January $1,$ based on historical experience, Veras estimated that there is a $75\%$ chance that it will remain free of accidents for the

entire year.

On March $20,$ three of the most senior drivers at Veras abruptly left. As a result, Veras had to hire inexperienced drivers to fill the

vacant positions. Consequently, Veras revised its estimate to a $25\%$ chance that it would be entitled to receive the semiannual

bonus and decided to continue this $25\%$ probability estimate until its six$-$month review at the end of June.

On June $30,$ Moose confirmed that there was no accident between January and June, so Veras would be entitled to the semiannual

bonus.

Veras bases estimates of variable consideration on the most likely amount it expects to receive.

Required:

Prepare Veras' June $30$ journal entry to account for cash received from Moose University. Include the revenue to be recognized for

June $1-$ June $30,$ as well as any necessary adjustments to revenue presumed to have been previously recorded.

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

Journal entry worksheet

$1$

Record the service revenue earned in June.