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 $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 $1,140, and a one-year enrollment in yoga classes sells for an additional $600. 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 $600 in advance, and for any additional visits over 70 during the year after the book is purchased, the customer can pay a $10 visitation fee per visit. F&S typically charges $10 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. Complete this question by entering your answers in the tabs below Req 1A and 1BReq 1C Req 2A and 2B 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 Performance Obligations? Percentage of Total Stand Alone Prices Item Description Stand Alone Prices Yoga discount voucher Gym membership Total stand alone price Percentage of Total Stand Alone Price Total Transaction Allocated Contract Price Item Description Yoga discount voucher Gym membership Total contract price Reg 1A and 1B Req 1A and 1B Req 1C EReq 2A and 2B Req 2C Prepare the journal entry to recognize revenue for the sale of a new membership. (If no entry is required for a transaction/event, select "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 General Journal Debit Credit Record entry Clear entry View general journal Req 1A and 1B Req 2A and 2B Req 1A and 1B Req 1C Req 2A and 2B 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. Percentage of Total Stand Alone Prices Item description Obligations? Fit 70 Additional gym visits Total stand alone price Performance Stand Alone Prices Percentage of Total Transaction Allocated Contract Price Item description Fit 70 Additional gym visits Total contract price Total Stand Alone Price Price Req 1C Req 2C Req 1A and 1B Req 1C Req 2A and 2B Req 2C Prepare the journal entry to recognize revenue for the sale of a new Fit 70 book. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the revenue for the sale of a new Fit 70 book. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Req 2A and 2B Req 2C
