The Rink offers annual $250 memberships that entitle members to unlimited use of ice-skating facilities and locker rooms. Each new membership also entitles the member to receive ten "20% off a $5 meal" coupons that are redeemable at the Rink's snack bar. The Rink estimates that approximately 75% of the coupons will be redeemed, and that, if the coupons weren't redeemed, $5 meals still would be discounted by 4% because of ongoing promotions. Required: Prepare the journal entry to recognize the sale of a new membership. Clearly identify revenue or deferred revenue associated with each performance obligation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to 2 decimal places.) View transaction list Journal entry worksheet Record the entry to recognize the sale of a new membership. Note: Enter debits before credits. Transaction General Journal Debit Credit View general jour Record entry Clear entry

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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The Rink offers annual $250 memberships that entitle members to unlimited use of
ice-skating facilities and locker rooms. Each new membership also entitles the
member to receive ten "20% off a $5 meal" coupons that are redeemable at the
Rink's snack bar. The Rink estimates that approximately 75% of the coupons will be
redeemed, and that, if the coupons weren't redeemed, $5 meals still would be
discounted by 4% because of ongoing promotions.
Required:
Prepare the journal entry to recognize the sale of a new membership. Clearly identify
revenue or deferred revenue associated with each performance obligation. (If no
entry is required for a transaction/event, select "No journal entry required" in the
first account field. Round your answers to 2 decimal places.)
View transaction list
Journal entry worksheet
Record the entry to recognize the sale of a new membership.
Note: Enter debits before credits.
General Journal
Debit
Credit
Transaction
View general jour
Record entry
Clear entry
Transcribed Image Text:The Rink offers annual $250 memberships that entitle members to unlimited use of ice-skating facilities and locker rooms. Each new membership also entitles the member to receive ten "20% off a $5 meal" coupons that are redeemable at the Rink's snack bar. The Rink estimates that approximately 75% of the coupons will be redeemed, and that, if the coupons weren't redeemed, $5 meals still would be discounted by 4% because of ongoing promotions. Required: Prepare the journal entry to recognize the sale of a new membership. Clearly identify revenue or deferred revenue associated with each performance obligation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to 2 decimal places.) View transaction list Journal entry worksheet Record the entry to recognize the sale of a new membership. Note: Enter debits before credits. General Journal Debit Credit Transaction View general jour Record entry Clear entry
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