The Rink offers annual $400 memberships that entitle members to unlimited use of ice-skating facilities and locker rooms. Each new membership also entitles the member to receive ten "40% off a $5 meal" coupons that are edeemable 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 8% because of ongoing promotions. Required: Calculate how much of the transaction price should be allocated to each performance obligation in the contract. Round your answer to 2 decimal places.) Transaction price Meal ce-skating facilities and locker rooms

The Rink offers annual $400 memberships that entitle members to unlimited use of ice-skating facilities and locker rooms. Each new membership also entitles the member to receive ten "40% off a $5 meal" coupons that are edeemable 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 8% because of ongoing promotions. Required: Calculate how much of the transaction price should be allocated to each performance obligation in the contract. Round your answer to 2 decimal places.) Transaction price Meal ce-skating facilities and locker rooms

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 $150 memberships that entitle members to unlimited use of ice-skating facilities and locker rooms. Each new membership also entitles the member to receive ten "30% 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 6% because of ongoing promotions. Required: Calculate how much of the transaction price should be allocated to each performance obligation in the contract. (Round your answer to 2 decimal places.) Transaction price Meal Ice-skating facilities and locker rooms