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 $1,300 provides a year of unlimited access to facilities and also entitles the member to receive a voucher redeemable for 20% 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 $1,470, and a one-year enrollment in yoga classes sells for an additional $750. 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. 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 60 coupon book with 60 prepaid visits over the next year. F&S has learned that Fit 60 purchasers make an average of 50 visits before the coupon book expires. A customer purchases a Fit 60 book by paying $750 in advance, and for any additional visits over 60 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 60 book.

Req 1A and 1B

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	Performance Obligations?		Stand Alone Prices		Percentage of Total Stand Alone Prices
Yoga discount voucher
Gym membership
Total stand alone price
Item Description	Percentage of Total Stand Alone Price		Total Transaction Price		Allocated Contract Price
Yoga discount voucher
Gym membership
Total contract price

Req 1C

• Record the revenue for the sale of a new membership.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
1

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.

Req 2A and 2B

• Record the revenue for the sale of a new Fit 60 book.

Note: Enter debits before credits.

Item description	Performance Obligations?		Stand Alone Prices		Percentage of Total Stand Alone Prices
Fit 60
Additional gym visits
Total stand alone price
Item description	Percentage of Total Stand Alone Price		Total Transaction Price		Allocated Contract Price
Fit 60
Additional gym visits
Total contract price

• Record the revenue for the sale of a new Fit 60 book.

Note: Enter debits before credits.

Req 2C

Transaction	General Journal	Debit	Credit
1