GymCo sells gym memberships and weight equipment. On 12/31/2014 customer C pays $250 cash for a 3-year membership starting on 1/1/2015 (valued at $150) and weights (valued at S100) which the customer takes possession of on 12/31/2014. The weights cost GymCo $75, and it costs GymCo $25 to operate the gym in 2015, 2016, and 2017. GymCo prepares financial statements once a year, on 12/31. What are the 12/31/2014, 12/31/2015, 12/31/2016 and 12/31/2017 journal entries? What is 2014 income? 2015 income? 2016 income? 2017 income?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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. GymCo sells gym memberships and weight equipment. On 12/31/2014 customer C pays $250 cash
for a 3-year membership starting on 1/1/2015 (valued at $150) and weights (valued at S100) which
the customer takes possession of on 12/31/2014. The weights cost GymCo $75, and it costs GymCo
$25 to operate the gym in 2015, 2016, and 2017. GymCo prepares financial statements once a year,
on 12/31. What are the 12/31/2014, 12/31/2015, 12/31/2016 and 12/31/2017 journal entries? What is
2014 income? 2015 income? 2016 income? 2017 income? 

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