You've been hired by SlipStream Inc., a rapidly growing privately held company. After experiencing rapid growth, they're interested in an IPO. SlipStream Inc. understands that to do so, their accounting function will need to be performed in accordance with GAAP. They've hired you to evaluate several major contracts and advise them on how to handle the revenue recognition for these contracts in accordance with ASC 606. More information about the company, their products and their contracts are below. SlipStream Inc. manufactures various exercise equipment. Their most popular product is the Swift Spin Bike that includes a screen which enables users to access on-demand cycling workouts over the internet. The Swift Spin Bike System includes the physical Swift Spin Bike as well as a one- year subscription to the SlipStream Platform, which allows users to access on-demand video workouts via their Swift Spin Bike or via other digital devices.  SlipStream sells individual Swift Spin Bikes for $1,500. Customers can use the Swift Spin Bike to access on-demand workouts via the SlipStream Platform. Customers can also use the Swift Spin Bike like a more traditional bike without on-demand workouts. In other words, customers can still use the bike to exercise without a subscription.  SlipStream also sells individual one-year subscriptions to the SlipStream Platform for $480. Customers can access the SlipStream Platform using a Swift Spin Bike or using other digital devices such as a tablet, phone or television to access the workouts.  As a package deal, SlipStream sells the Swift Spin Bike System (Bike plus one year subscription) for $1,800. Contract with HomeAway HomeAway Hotels is a hotel brand that is interested in purchasing several of the Swift Spin Bike Systems to place in the gym areas in many of their locations. They want both the physical Swift Spin Bike as well as the subscription so guests can access the on-demand workouts while traveling. On January 1, 2024, SlipStream delivers 1,000 Swift Spin Bike Systems to HomeAway Hotels at a price of $1,800 per system. SlipStream Industries receives $1,800,000 from HomeAway on January 25, 2024. repare a memo for your client explaining how they should calculate revenue for each of the two major contracts. The client is unfamiliar with 606, thus your memo should include clear references to the FASB codification to support your conclusions. Please also provide specific journal entries each month, and please break out the journal entries by contract. The Codification can guide you through the process of recognizing the revenue over the time periods covered by both contracts. 2. Again, applying ASC 606, discuss how Slip Stream should account for the June Sales of the Stride Systems. 

Please provide the June Revenue entry related to the sale of the Stride Systems. For simplicity, assume that all coupons issued have yet to be redeemed.