The Rink offers annual $300 memberships that entitle members to unlimited use of ice-skating facilities and locker rooms. Each new membership also entitles the member to receive TEN coupons giving the customer "25% off a $5 meal" redeemable at the Rink's snack bar. The Rink estimates that approximately 80% of the coupons will be redeemed, and that, if the coupons weren't redeemed, $5 meals still would be discounted by 5% 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. Do NOT round intermediate calculations. Round your answers to 2 decimal places.) View transaction list Journal entry worksheet 1 Record the entry to recognize the sale of a new membership. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Chaigna
The Rink offers annual $300 memberships that entitle members to unlimited use of ice-skating facilities and locker rooms. Each new membership also entitles the member to receive TEN coupons giving the customer "25% off a $5 meal" redeemable at the Rink's snack bar. The Rink estimates that approximately 80% of the coupons will be redeemed, and that, if the coupons weren't redeemed, $5 meals still would be discounted by 5% 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. Do NOT round intermediate calculations. Round your answers to 2 decimal places.) View transaction list Journal entry worksheet 1 Record the entry to recognize the sale of a new membership. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Chaigna
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The Rink offers annual $300 memberships that entitle members to unlimited use of ice-skating
facilities and locker rooms. Each new membership also entitles the member to receive TEN
coupons giving the customer "25% off a $5 meal" redeemable at the Rink's snack bar. The Rink
estimates that approximately 80% of the coupons will be redeemed, and that, if the coupons
weren't redeemed, $5 meals still would be discounted by 5% 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. Do NOT round
intermediate calculations. Round your answers to 2 decimal places.) View transaction list Journal
entry worksheet 1 Record the entry to recognize the sale of a new membership. Note: Enter
debits before credits. Transaction 1 General Journal Debit Credit Chaigna
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