(Solved by Humans)-Problem 5-16 Upfront fees,separate performance obligations Fit & Slim is a health club that offe

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Problem 5-16 Upfront fees,separate performance obligations Fit & Slim is a health club that offers members various gym services. F&S accounts reports under the ASU.    1. Assume F&S offers a deal whereby enrolling in a new membership also entitles the member to receive a voucher redeemable for 25 percent off a yearA????1s worth of premium yoga classes. A new membership costs $800, and a yearA????1s worth of premium yoga costs an additional $600. F&S estimates that approximately 40 percent of the vouchers will be redeemed. F&S offers a 10 percent discount on all courses as part of its seasonal promotion strategy.           b. What amount of the transaction price would you allocate to the discount voucher on yoga course?(Round your answer to 2 decimal places.)    c. Prepare the journal entry to recognize revenue for the sale of a new membership. Clearly identify revenue or unearned revenue associated with each distinct performance obligation. (If no entry is required for a particular event, select "No journal entry required" in the first account field.)            2. Assume F&S offers a A????1Fit 50A????1 coupon book with 50 prepaid visits over the next year. F&S has learned that Fit 50 purchasers make an average of 40 visits before the coupon book expires. A customer purchases a Fit 50 book by paying $500 in advance, and for any additional visit over 50 during the year after the book is purchased, the customer can pay a $15 fee visitation fee. Depending on the season, F&S typically charges between $12 and $18 to nonmembers who wish to work out on a single day.      b. What amount of the transaction price would you allocate to separate performance obligations?           c. Prepare the journal entry to recognize revenue for the sale of a new Fit 50 book. (If no entry is required for a particular event, select "No journal entry required" in the first account field.)