Revenue - 10 Marks

On 30 November 2020, Aria Ltd provided a life coaching service package to Customer X, consisting of an initial in-person consultation and follow up telephone support (up to 4 hours per month) for a one-year period. Customer X paid $1,200 upfront for this package on 30 November 2020 when they had their initial consultation. Aria Ltd charges $400 for an initial in-person consultation and $100 per month for telephone support (up to 4 hours per month) when these services are sold separately.

This Question has two Parts: Part (a) (4 Marks) and Part (b) (6 Marks)

Required:

Part (a) Determine how much of the transaction price should be allocated to each of the performance obligations. Show your calculations. 4 Marks

Part (b) Prepare the journal entries to record this transaction in accordance with AASB 15 for the year ended 30 June 2021. 6 Marks

Enter your answers in the Journal Template below:

Date	Account	Debit	Credit