Question
pacifica fitness ltd is marketing a fitness package in which, for $420, it provides customers with a 6 month gym membership (which retails separately for
pacifica fitness ltd is marketing a fitness package in which, for $420, it provides customers with a 6 month gym membership (which retails separately for $520, a gym bag (which retails separately for $33)and five free Zumba classes (which retail separately for 67). Required to determine
A) separate performance obligation and how much of the transaction price to allocate to each performance obligation.
b) pacific fitness ltd sold 14 packages advance and receive the first payment on 30 May 2023 .the reporting period is 30 June 2023.Provide the accounting entries to record the receipt of the cash and the subsequent reporting date adjustment.
c) what is the balance of revenue and liability account impacted by the above transaction (item b) at 30 august 2023.
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