LYFT enters into an agreement with University to set up a $60K prepaid account balance to be used for student rides from University sporting events. University pays at the beginning of each month and the balance is drawn down as trips are completed during the month. The contract runs from 7/1/2019 to 12/31/2019.

a. What entry(ies) does LYFT record on the first day of the month for this transaction? How does the entry change if LYFT receives the cash on the first day versus if receives the cash on the last day of the month?

B. Assuming LYFT aggregates and books the trips against University's balance at month-end, what entry is recorded at the end of the month if only $30K in rides are taken? What entry is recorded if the $20K unused balance is refunded to University at the end of the month?

c. If the contract is set up that any usage beyond the $50K will be billed to University at the end of the month, what entry(ies) would be recorded at month end if $75K in rides were taken during the period?

d. If LYFT grants all students enrolled at University a 10% discount, what would the entry(ies) be to record a $10 student ride from a University sporting event?

e. If the University does not pay for 6 months but utilizes $100K in rides, how would this be reflected in the 12/31/2019 balance sheet? What P&L considerations would you have to assess?