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 $1,200, 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. 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 40 coupon book with 40 prepaid visits over the next year. F&S has learned that Fit 40 purchasers make an average of 30 visits before the coupon book expires. A customer purchases a Fit 40 book by paying $500 in advance, and for any additional visits over 40 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 40 book.

Complete this question by entering your answers in the tabs below. 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. repare 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.) 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. Prepare the journal entry to recognize revenue for the sale of a new Fit 40 book. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the revenue for the sale of a new Fit 40 book. Note: Enter debits before credits