Jesse's Pool sells a special family season pass package for $500. The package allows unlimited use of the indoor pool from Oct. 1, 2023 to May 31, 2024 (8 months); the pass normally sells $400. In addition, the purchaser gets 3 towels that would normally sell for $100. And lastly the package includes 10 coupons that give 30% off purchases of food while at Jesse's Pool. It is expected that 80% of the coupons will be used, and the average purchase would be $25. Jessie sold 10 packages on 10/1/2023 giving the passes, towels and coupons to the purchasers. By the end of the year, 20 of the 100 coupons had been redeemed (Jessie records the revenue in adjusting entries). (round to the nearest $1) Instructions: Record the (1) sale of the 10 packages on Oct 1. Be sure to show your work. Work (required and graded) Identify the Performance Obligations (PO's): What value is allocated to each of these PO's? Oct 1 Entry Acct and Amount Debit Account and Amount Credit Record the adjusting entry as of 12/31. Work for recognition of deferred revenue? Dec 31 Entry Acct and Amount Debit Account and Amount Credit
Jesse's Pool sells a special family season pass package for $500. The package allows unlimited use of the indoor pool from Oct. 1, 2023 to May 31, 2024 (8 months); the pass normally sells $400. In addition, the purchaser gets 3 towels that would normally sell for $100. And lastly the package includes 10 coupons that give 30% off purchases of food while at Jesse's Pool. It is expected that 80% of the coupons will be used, and the average purchase would be $25. Jessie sold 10 packages on 10/1/2023 giving the passes, towels and coupons to the purchasers. By the end of the year, 20 of the 100 coupons had been redeemed (Jessie records the revenue in adjusting entries). (round to the nearest $1) Instructions: Record the (1) sale of the 10 packages on Oct 1. Be sure to show your work. Work (required and graded) Identify the Performance Obligations (PO's): What value is allocated to each of these PO's? Oct 1 Entry Acct and Amount Debit Account and Amount Credit Record the adjusting entry as of 12/31. Work for recognition of deferred revenue? Dec 31 Entry Acct and Amount Debit Account and Amount Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Jesse's Pool sells a special family season pass package for $500. The package allows unlimited use of the indoor pool
from Oct. 1, 2023 to May 31, 2024 (8 months); the pass normally sells $400. In addition, the purchaser gets 3 towels
that would normally sell for $100. And lastly the package includes 10 coupons that give 30% off purchases of food while
at Jesse's Pool. It is expected that 80% of the coupons will be used, and the average purchase would be $25. Jessie sold
10 packages on 10/1/2023 giving the passes, towels and coupons to the purchasers. By the end of the year, 20 of the
100 coupons had been redeemed (Jessie records the revenue in adjusting entries). (round to the nearest $1)
Instructions: Record the (1) sale of the 10 packages on Oct 1. Be sure to show your work. Work (required and graded)
Identify the Performance Obligations (PO's): What value is allocated to each of these PO's? Oct 1 Entry Acct and
Amount Debit Account and Amount Credit Record the adjusting entry as of 12/31. Work for recognition of deferred
revenue? Dec 31 Entry Acct and Amount Debit Account and Amount Credit
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