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Pacifica Fitness Ltd is marketing a 'fitness package' in which, for $400, it provides customers with a 6-month gym membership (which retails separately for $510,

Pacifica Fitness Ltd is marketing a 'fitness package' in which, for $400, it provides customers with a 6-month gym membership (which retails separately for $510, a gym bag (which retails separately for $33) and five free zumba classes (which retail separately for 63). You are required to determine: (10 marks) a) Separate performance obligations and how much of the transaction price to allocate to each performance obligation.

10 marks)

a) Separate performance obligations and how much of the transaction price to allocate to each performance obligation.

Good or Service

Stand-alone Price

Discount Allocation

Allocated Amount

total

b) Pacifica Fitness Ltd sold 13 packages advance and receive 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.

30 May 2023

Debit/Credit

Description

Debit Amount

Credit Amount

30 June 2023

Debit/Credit

Description

Debit Amount

Credit Amount

c) What is the balance of revenue and liability account impacted by the above transaction (item b) at 30 August 2023.

Description

Total

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