Pacifica Fitness Ltd is marketing a fitness package' in which, for $410, it provides customers with a 6-month gym membership (which retails separately for $540, a gym bag (which retails separately for $33) and five free zumba classes (which retail separately for 68). You are required to determine: a) Separate performance obligations and how much of the transaction price to allocate to each performance obligation. b) Pacifica Fitness Ltd sold 17 packages advance and receive first payment on 30 May 2023. The reporting period is 30 June 2023. Provide the accounting entries to record the receipt of the cash and the subsequent reporting date adjustment. c) What is the balance of revenue and liability account impacted by the above transaction (item b) at 30 August 2023.
Pacifica Fitness Ltd is marketing a fitness package' in which, for $410, it provides customers with a 6-month gym
membership (which retails separately for $540, a gym bag (which retails separately for $33) and five free zumba classes
(which retail separately for 68). You are required to determine:
a) Separate performance obligations and how much of the transaction price to allocate to each performance obligation.
b) Pacifica Fitness Ltd sold 17 packages advance and receive first payment on 30 May 2023. The reporting period is 30
June 2023. Provide the accounting entries to record the receipt of the cash and the subsequent reporting date
adjustment.
c) What is the balance of revenue and liability account impacted by the above transaction (item b) at 30 August 2023.
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