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

Required:

Assume F&S offers a deal whereby enrolling in a new membership for $1,200 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 $1,235, and a one-year enrollment in yoga classes sells for an additional $650. 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.

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. Journal entry worksheet Record the revenue for the sale of a new membership. Note: Enter debits before credits. 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. Journal entry worksheet Record the revenue for the sale of a new membership. Note: Enter debits before credits