Req 1A and 1B Req 1C Req 2A and 2B Req 2C 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. Item description Fit 40 Performance Obligation? Stand Alone Prices Percentage of Total Stand Alone Prices 0 0 $ 0 Percentage of Total Transaction Price 0% Allocated Contract Price Additional gym visits Total stand alone price Fit 40 Item description Additional gym visits Total contract price Total Stand Alone Price $ $ $ 0 0 0 < Previous Req 2C > Req 1A and 1B Req 1C Req 2A and 2B Req 2C Prepare the journal entry to recognize revenue for the sale of a new Fit 40 book. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No Transaction General Journal Debit Credit < Previous Req 2C >
Fit & Slim (F&S) is a health club that offers members various gym services.
Required:
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Assume F&S offers a deal whereby enrolling in a new membership for $950 provides a year of unlimited access to facilities and also entitles the member to receive a voucher redeemable for 20% 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 $980, and a one-year enrollment in yoga classes sells for an additional $500. F&S estimates that approximately 40% 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.
c. Prepare the journal entry to recognize revenue for the sale of a new membership.
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Assume F&S offers a “Fit 40” coupon book with 40 prepaid visits over the next year. F&S has learned that Fit 40 purchasers make an average of 30 visits before the coupon book expires. A customer purchases a Fit 40 book by paying $500 in advance, and for any additional visits over 40 during the year after the book is purchased, the customer can pay a $10 visitation fee per visit. 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 you have indicated, allocate a portion of the contract price.
c. Prepare the journal entry to recognize revenue for the sale of a new Fit 40 book.
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