Facts:

WinGood Technologies Inc. (WTI) is a firm that sells iPhones with a specialized app to hospitals.

Each iPhone is a standard, base model iPhone with a two year AppleCare+ warranty. These are sold to the hospitals at cost plus a 5% handling fee. The iPhones become the property of the hospital at the initial sale.

The app on the iPhone allows the hospital employee to log in to a device and then communicate, walkie-talkie style with any other logged in user in the hospital system. Only employees are logged in to the app. WTI sells the app as a subscription, only allows the app on iPhones that they have sold to a hospital, and only in one-year subscriptions.

Initial set up fees are incurred for new contracts. This covers setup of new devices, charging stations, and initial training on the app.

Prices are noted below.

iPhone 10 with two year AppleCare+ $ 629.99

App, one-year subscription $ 99.00

Initial set up, up to 50 devices $2,500.00

Initial set up, up to 51-100 devices $4,500.00

Assignment:

Answer the below questions using the FASB Codification. Make sure that you properly cite the ASC reference and use a proper memo format.

WTI has entered into a contract with RCG Hospitals for 75 devices. The contract was signed on 1/13/19 and the devices will be delivered and installed by 1/31/19. All training obligations will be conducted over the subsequent two weeks. Prepare a schedule that shows when revenue should be recognized?(This is the question that needs to be answered using FASB Codification)