Fit & Slim (F&S) is a health club that offers members various gym services. Required: 1....

 
 
 
 

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Fit & Slim (F&S) is a health club that offers members various gym services. Required: 1. Assume F&S offers a deal whereby enrolling in a new membership for $700 provides a year of unlimited access to facilities and also entitles the member to receive a voucher redeemable for 25% 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 $720, 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. 1. 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. 2. Assume F&S offers a Fit 50 coupon book with 50 prepaid visits over the next year. F&S has learned that Fit 50 purchasers make an average of 40 visits before the coupon book expires. A customer purchases a Fit 50 book by paying $500 in advance, and for any additional visits over 50 during the year after the book is purchased, the customer can pay a $15 visitation fee per visit. F&S typically charges $15 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 50 book. Complete this question by entering your answers in the tabs below. Req 1A and 18 Req 1C Req 2A and 28 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 Yoga discount voucher Gym membership Total stand alone price Item Description Yoga discount voucher Gym membership Total contract price Performance Obligation? Yes Yes Percentage of Total Stand Alone Price Stand Alone Prices S Total Transaction Price Req 1A and 18 Req 1C Req 2A and 2B Prepare the journal entry to recognize revenue for the sale of a new membership. (If no entry is required for a transaction/event No journal entry required in the first account field.) View transaction list Journal entry worksheet Record the revenue for the sale of a new membership. Note: Enter debits before credits. Transaction 1 :Cash Record entry Req 2C General Journal Clear entry Debit Credit View general journal Complete this question by entering your answers in the tabs below. Req 1A and 18 Req 1C Req 2A and 28 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 50 Additional gym visits Total stand alone price Item Description Fit 50 Additional gym visits Total contract price Performance Obligation? Percentage of Total Stand Alone Price Stand Alone Prices S Total Transaction Price < Req 1C Percentage of Total Stand Alone Prices Allocated Contract $ S S 0 0 0% Price 0 0 0 Req 2C > Complete this question by entering your answers in the tabs below. Req 1A and 18 Req 1C Req 2A and 28 Req 2C Prepare the journal entry to recognize revenue for the sale of a new Fit 50 book. (If no entry is required for a transaction/event No journal entry required in the first account field.) View transaction list Journal entry worksheet < 1 Record the revenue for the sale of a new Fit 50 book. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View general journal Fit & Slim (F&S) is a health club that offers members various gym services. Required: 1. Assume F&S offers a deal whereby enrolling in a new membership for $700 provides a year of unlimited access to facilities and also entitles the member to receive a voucher redeemable for 25% 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 $720, 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. 1. 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. 2. Assume F&S offers a Fit 50 coupon book with 50 prepaid visits over the next year. F&S has learned that Fit 50 purchasers make an average of 40 visits before the coupon book expires. A customer purchases a Fit 50 book by paying $500 in advance, and for any additional visits over 50 during the year after the book is purchased, the customer can pay a $15 visitation fee per visit. F&S typically charges $15 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 50 book. Complete this question by entering your answers in the tabs below. Req 1A and 18 Req 1C Req 2A and 28 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 Yoga discount voucher Gym membership Total stand alone price Item Description Yoga discount voucher Gym membership Total contract price Performance Obligation? Yes Yes Percentage of Total Stand Alone Price Stand Alone Prices S Total Transaction Price Req 1A and 18 Req 1C Req 2A and 2B Prepare the journal entry to recognize revenue for the sale of a new membership. (If no entry is required for a transaction/event No journal entry required in the first account field.) View transaction list Journal entry worksheet Record the revenue for the sale of a new membership. Note: Enter debits before credits. Transaction 1 :Cash Record entry Req 2C General Journal Clear entry Debit Credit View general journal Complete this question by entering your answers in the tabs below. Req 1A and 18 Req 1C Req 2A and 28 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 50 Additional gym visits Total stand alone price Item Description Fit 50 Additional gym visits Total contract price Performance Obligation? Percentage of Total Stand Alone Price Stand Alone Prices S Total Transaction Price < Req 1C Percentage of Total Stand Alone Prices Allocated Contract $ S S 0 0 0% Price 0 0 0 Req 2C > Complete this question by entering your answers in the tabs below. Req 1A and 18 Req 1C Req 2A and 28 Req 2C Prepare the journal entry to recognize revenue for the sale of a new Fit 50 book. (If no entry is required for a transaction/event No journal entry required in the first account field.) View transaction list Journal entry worksheet < 1 Record the revenue for the sale of a new Fit 50 book. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View general journal

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