Required:1. Assume F&S offers a deal whereby enrolling in a new membership for $1,900 provides a year of unlimited access to facilities andalso entitles the member to receive a voucher redeemable for 30% off yoga classes for one year. The yoga classes are offered togym members as well as to the general public. A new membership normally sells for $1,940, and a one-year enrollment in yogaclasses sells for an additional $600. F&S estimates that approximately 50% of the vouchers will be redeemed. F&S offers a 10%discount on all one-year enrollments in classes as part of its normal promotion strategy.a. & b. Indicate below whether each item is a separate performance obligation. For each separate performance obligation youhave indicated, allocate a portion of the contract price.c. Prepare the journal entry to recognize revenue for the sale of a new membership.2. Assume F&S offers a "Fit 60" coupon book with 60 prepaid visits over the next year. F&S has learned that Fit 60 purchasersmake an average of 50 visits before the coupon book expires. A customer purchases a Fit 60 book by paying $600 in advance,and for any additional visits over 60 during the year after the book is purchased, the customer can pay a $10 visitation fee pervisit. F&S typically charges $10 to nonmembers who use the facilities for a single day.a. & b. Indicate below whether each item is a separate performance obligation. For each separate performance obligation youhave indicated, allocate a portion of the contract price.c. Prepare the journal entry to recognize revenue for the sale of a new Fit 60 book.Complete this question by entering your answers in the tabs below.Req 1A and 1BReq 1CReq 2A and 2B Req 2CIndicate below whether each item is a separate performance obligation. For each separate performance obligation you haveindicated, allocate a portion of the contract price.Item DescriptionYoga discount voucherFacilities accessTotal stand alone pricePerformanceObligation?Stand Alone PricesPercentage of TotalStand Alone PricesItem DescriptionPercentage ofTotal StandTotal TransactionPriceAllocated ContractPriceAlone PriceYoga discount voucherFacilities access

Revenue Recognition means the recording of revenues of an entity in its books. It is an accrual…

1. Assume F&S offers a deal whereby enrolling in a new membership for $1,900 provides a year of unlimited access to facilities and also entitles the member to receive a voucher redeemable for 30% off yoga classes for one year. The yoga classes are offered to gym members as well as to the general public. A new membership normally sells for $1,940, and a one-year enrollment in yoga classes sells for an additional $600. F&S estimates that approximately 50% of the vouchers will be redeemed. F&S offers a 10% discount on all one-year enrollments in classes as part of its normal promotion strategy. a. & b. Indicate below whether each item is a separate performance obligation. For each separate performance obligation you have indicated, allocate a portion of the contract price.

1. Assume F&S offers a deal whereby enrolling in a new membership for $1,900 provides a year of unlimited access to facilities and also entitles the member to receive a voucher redeemable for 30% off yoga classes for one year. The yoga classes are offered to gym members as well as to the general public. A new membership normally sells for $1,940, and a one-year enrollment in yoga classes sells for an additional $600. F&S estimates that approximately 50% of the vouchers will be redeemed. F&S offers a 10% discount on all one-year enrollments in classes as part of its normal promotion strategy. a. & b. Indicate below whether each item is a separate performance obligation. For each separate performance obligation you have indicated, allocate a portion of the contract price.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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