1. Assume F&S offers a deal whereby enrolling in a new membership for $1,100 provides a year of unlimited access to facilities and also entitles the member to receive a voucher redeemable for 30% 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 $1,200, and a one-year enrollment in yoga classes sells for an additional $500. F&S estimates that approximately 50% 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.

2. Assume F&S offers a Fit 70 coupon book with 70 prepaid visits over the next year. F&S has learned that Fit 70 purchasers make an average of 60 visits before the coupon book expires. A customer purchases a Fit 70 book by paying $500 in advance, and for any additional visits over 70 during the year after the book is purchased, the customer can pay a $20 visitation fee per visit. F&S typically charges $20 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 70 book.

Item Description	Performance Obligation?		Stand Alone Prices		Percentage of Total Stand Alone Prices
Yoga discount voucher					0
Facilities access					0
Total stand alone price			$0		0%
Item Description	Percentage of Total Stand Alone Price		Total Transaction Price		Allocated Contract Price
Yoga discount voucher					$0
Facilities access					$0
Total contract price					$0