Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please hellpp Problem 2 The Rink offers annual $350 special memberships that entitle members to unlimited use of ice-skating facilities and locker rooms. Each new
please hellpp
Problem 2 The Rink offers annual $350 "special memberships" that entitle members to unlimited use of ice-skating facilities and locker rooms. Each new membership also entitles the member to receive ten "30\% off a $5 meal" coupons that are redeemable at the Rink's snack bar. The Rink estimates that approximately 80% of the coupons will be redeemed. A "The Rink" Jacket is also given away with a special membership. The jackets sell for $60. People can pay $300 to have unlimited use of the facilities without the special membership package. The membership runs from May 1, 2021 to February 28, 2022 (10 months). 100 memberships were sold on the May 1 season in 2021 for cash. In addition, 200 snack bar coupons had been redeemed by Dec. 31, 2021 (no revenue from the coupons was recognized when they were redeemed during the year). Prepare the entries for sales of the tickets prior to May 1 , and the adjusting entry at the end of 2021. (a) What were the performance obligations for the special membership? (b) What $ amount is assigned to each performance obligation? (c) How much of each performance obligation was earned Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started