Richard Co has successfully built a practice that services small businesses by providing accounting related services. Richard Co will provide free training and initial implementation of accounting records through QuickBooks but requires a monthly subscription in order to access the account information. This training is otherwise provided for a one-time fee of $5,000. Upon subscription ($5k/month), Richard Co will perform all related accounting functions for the small business using QuickBooks. The subscription requires a 3 year contract. Premium Services can be purchased at a 10% discount, if included in the contract, which includes 24/7 direct hotline to senior accountants within Richard Co. The Premium Services are routinely sold at standalone prices of $50/hr. Richard estimates that a typical client will utilize this service on average of 20 hours a month.

Need calculation for both below

Perform the 5 steps of Revenue Recognition assuming a client purchased the maximum package. Assume the estimate and actual of hours for Premium Services has no variances.

Record all necessary entries for the first year of the contract