Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Power Plus is a local gym that is currently offering new membership on the following terms: An up-front non-refundable cash payment of $450 for new
Power Plus is a local gym that is currently offering new membership on the following terms: An up-front non-refundable cash payment of $450 for new members for a 12 month period. A 12 month membership would normally cost $480. For the first three months, new members receive free weekly half hour individual sessions with a personal trainer. Three months of personal trainer sessions would normally cost $210. All new members will receive a free set of weights at the end of the second month of their membership, which normally have a retail price of $40. A new member, Mr Abe, pays his membership of $450 on 1 May 2018. Assume that the five-step model in AASB 15 has been met. Power Plus adjusts its accounts annually on 30 June. On 30 June 2018, Power Plus should: Select one: credit Gym Membership Revenue for $296 (rounded) credit Gym Membership Revenue for $49 (rounded) credit Gym Membership Revenue for $28 (rounded) credit Gym Membership Revenue for $309 (rounded)
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