The Rink offers annual $150.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 75% of the coupons will be redeemed, and that, if the coupons weren't redeemed, $5 meals still would be discounted by 6% because of ongoing promotions. Required: Prepare the journal entry to recognize the sale of a new membership. Clearly identify revenue or deferred revenue associated with each performance obligation. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your answers to 2 decimal places.
Q: The following interest-bearing_promissory note was discounted at a bank by the payee before…
A: As per the guidelines we can provide the answer for one question (first one), as the question are…
Q: After reviewing the new activity-based costing system that Nancy Chen has Implemented at IVC's…
A: ABC seems to be a costing approach that identifies activities in an organization and allocates the…
Q: As of December 31, 2024, Lange Company has the following deferred tax assets and liabilities:…
A: Deferred Tax Assets & Deferred Tax Liability A company's balance sheet will show a tax payment…
Q: Palangga Company provided the following information for the current year: Beginning inventory 400…
A: Introduction: Gross purchase is the total amount of purchase made during the period before any…
Q: Tempo Company's fixed budget (based on sales of 16,000 units) folllows. Fixed Budget Sales (16,000…
A: Variable cost is the cost which is variable in nature. It keeps on changing with the change in the…
Q: Analyzing Cash Dividends on Preferred and Common Stock Potter Company has outstanding 13,000 shares…
A: Note: Hi! Thank you for the question As per the honor code, We’ll answer the first question since…
Q: Darlentina Company provided the following information for the current year: Income from continuing…
A: It is given that: Income from continuing operations 4,000,000 Income from…
Q: Problem III * Nogueiras Corp's budgeted monthly sales are P5,000, and they are constant from month…
A: The cash budget is the forecasted statement of cash receipts and payments. These are prepared on the…
Q: Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when…
A: LIFO states that units purchased first would be sold last by the company. Whereas, FIFO states that…
Q: Calculate the unit variable costs within the relevant range. (Round answer to 2 decimal places e.g.…
A: Variable costs are costs that varies with the output unit. Fixed costs are costs that remains…
Q: TP exchanged an apartment building with an adjusted basis of $100,000 and a FMV of $175,000 for land…
A: Recognized gain is the amount which is earned on sale of an asset. When an asset is sold over and…
Q: A soft drink bottler incurred the following factory utility cost: $3,511 for 900 cases bottled and…
A: Variable cost changes with the level of units proportionately which means, the variable cost per…
Q: The following information is available for Swifty's Chocolates: Actual production Budgeted…
A: calculation of direct material price and quantity variance are as follows
Q: 5. Distribution of Income for Partnerships Julia Green invested $125,000 and Michael Spencer…
A: A partnership is a form of business organization. It is the one wherein two or more persons together…
Q: PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alt- [LO 9-2, LO 9-3]…
A: Answer :Double declining depreciation rate = 2*(100%/Estimated useful life in year) Double declining…
Q: Lemon Ltd has a December 31 year end. On January 1, 2018 Lemon acquires 4000 shares of Nike Inc at…
A: A journal entry is the act of keeping or producing records of any economic or non-economic…
Q: Shannon Sharpe owns and operates three Frazer Speedo outlets in Columbus, OH. Frazer Speedo is an…
A: Prime cost is the sum of raw material costs and the direct labor costs. Utility costs, manager pay,…
Q: eventy-Two Inc., a developer of radiology equipment, has stock outstanding as follows: 60,000 shares…
A: Introduction:- Dividends derived from portion of a company's profits. Which are distributed to…
Q: Hera earned a $175,000 salary in 2021. Her husband, Zeus, earned $100,000 salary in 2021. Hera and…
A: $17050
Q: Swifty Merchandise planned to produce 47,000 fleece jackets in its Metairie, Louisiana, factory.…
A:
Q: Analyze the trends and factors that determine Astro Berhad Malaysia in 2022 that need for the debt…
A: The debt to equity ratio, also known as the "debt-equity ratio," "risk ratio," or "gearing," is a…
Q: 2. James borrows, Php 700,000 and promises to pay the principal and interest at 15% compounded…
A: Time Value Of Money :— According to this concept, value of money in present day is greater than the…
Q: Morganton Company makes one product and it provided the following information to help prepare the…
A: Estimated total selling and administrative expenses are those expenses which are incurred for…
Q: Pepper Corporation owns 70 percent of Salt Company’s stock. In the 20X9 consolidated income…
A: The combined financials of a parent firm and its subsidiaries are known as consolidated financial…
Q: arbara Simmons purchased 100 shares of Home Depot stock for $187 per share, using as little of her…
A: calculation of above requirement are as follows
Q: What is an intangible asset? Should all intangible assets be subject to amortization? Explain why or…
A: An intangible asset is one that lacks a physical form. Intangible assets include goodwill, brand…
Q: Manufacturing overhead for year 1 totaled $645,000. Overhead is allocated to products based on…
A: Profit Margin: The difference between the entire revenue that your company pulls in and the total…
Q: Required information Use the following information for the Exercises below. (Algo) [The following…
A: Actual cost refers to the amount that an industry incurs when it produces a product. This cost…
Q: a. Imelda Company budgets sales of $850,000, fixed costs of $19,100, and variable costs of $85,000.…
A: SOLUTION: Contribution Margin Ratio: Contribution Margin Analysis is a technique of cost volume…
Q: Sharp Company manufactures a product for which the following standards have been set: Standard…
A: The resources and materials utilized in the creation of a product that may be directly connected to…
Q: features of good government accounting
A: Introduction Government accounting refers to the accounting software used by government entities to…
Q: Which of the following statements are true? 1. Wages paid to production supervisors would be…
A: The correct option with proper explanation are as follows
Q: At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $120 million…
A: A journal entry is utilized to record a business deal in a company's accounting records. A journal…
Q: SkiBlu, Ltd., divides its customers into Gold customers and Silver customers. The company has one…
A: Lets understand the basics. We are required to calculate which customer is more profitable for the…
Q: Prepare the necessary journal entries for the following dates for Rodney Inc.
A: Lets understand the basics. When notes payable received contain lessor interest rate than market…
Q: Items 6 and 7 are based on the following data of Matatag Company for the month of March 2022:…
A: We can calculate direct material purchased in the March by preparing a reverse cost sheet.…
Q: Vin Diesel owns the Fredonia Barber Shop. He employs 4 barbers and pays each a base salary of $1,250…
A: Introduction: Cost may be categorized in different ways based on its nature. One of the most useful…
Q: During 2023, Door Inc. decided to dispose of Bell Division, which is considered a separate reporting…
A:
Q: The $10,000 balance in the T-account below represents overapplied manufacturing overhead for the…
A: Actual costs are debited to the Manufacturing Overhead Account. Applied costs are credited to the…
Q: Morganton Company makes one product and it provided the following information to help prepare the…
A: The gross margin is computed as follows: - Gross Margin = Sales Value - Cost of Goods SoldSales…
Q: (12.) Multi-product Co. produces these products with the following characteristics: Product Tp2 Pq4…
A: Break Even Point (BEP) :— It is the point at which total revenue is equal to total cost. It is the…
Q: On January 1, 2020, Chamberlain Corporation pays $413,200 for a 60 percent ownership in Neville.…
A: Net income is the amount of income earned by an entity after deducting expenses from the revenues.…
Q: Cost of Goods Sold, Cost of Goods Manufactured Sandbagger Company has the following information for…
A: The cost of goods manufactured includes the total cost of goods that are finished during the period.…
Q: Joe and Jessie are married and have one dependent child, Lizzie. Lizzie is currently in college at…
A: Taxable income refers to the income which is taxable in the hands of the taxpayer. In short, it…
Q: In your initial audit of Beta Co., you find the following ledger account balances, Debit Credit 18%,…
A: Bond redemption is the repayment of the principal amount of bonds. Accrued interest is the amount of…
Q: Paper Company acquired 80 percent of Scissor Company’s outstanding common stock for $296,000 on…
A: Equity Method in Investment With the equity method of accounting, the investment is initially…
Q: rs do not adequately distinguish between routine work, such as removal of asbestos insulation around…
A: Activity-based costing refers to the form of costing in which the costs are assigned to products on…
Q: Question 10 Shane's Cookware Company has three cost pools and overhead estimates are as follows:…
A: Sorry Hand Solution is not possible, but I have solved this question with proper format for you.…
Q: The most recent example of the political process at work in standard-setting is the controversy…
A: (D) creation of the FASB
Q: In 2021, Western Transport Company entered into the treasury stock transactions described below. In…
A: Introduction: A journal entry is an act of maintaining or producing records of any transaction,…
please help me
Step by step
Solved in 2 steps with 2 images
- The Rink offers an annual $200 memberships that entitle members to unlimited use of ice-skating facilities and locker rooms. Each new membership also entitles the member to receive ten "35% 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, and that, if the coupons weren’t redeemed, $5 meals still would be discounted by 5% because of ongoing promotions. Prepare the journal entry to recognize the sale of a new membership.Clearly identify revenue or deferred associated with each field obligation.The Rink offers annual $400 memberships that entitle members to unlimited use of ice-skating facilities and locker rooms. Each new membership also entitles the member to receive ten "35% 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, and that, if the coupons weren't redeemed, $5 meals still would be discounted by 5% because of ongoing promotions. Required: Calculate how much of the transaction price should be allocated to each performance obligation in the contract. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Transaction price Meal Ice-skating facilities and locker roomsVail is one of the largest ski resorts in the United States. Suppose that on October 1, 2021, Vail sells gift cards (lift passes) for $100,000. The gift cards are redeemable for one day of skiing during the upcoming winter season. The gift cards expire on April 1, 2022. Customers redeem gift cards of $20,000 in December, $30,000 in January, $25,000 in February, and $15,000 in March.Required:1. Record the sale of gift cards on October 1, 2021.2. Record the redemption of gift cards as of December 31, 2021.3. Record the redemption of gift cards in 2022 by preparing a summary entry as of March 31, 2022.4. Record the expiration (breakage) of gift cards on April 1, 2022.
- Fit & Slim (F&S) is a health club that offers members various gym services. Required: Assume F&S offers a deal whereby enrolling in a new membership for $1,250 provides a year of unlimited access to facilities and also entitles the member to receive a voucher redeemable for 30% off yoga classes for one year. The yoga classes are offered to gym members as well as to the general public. A new membership normally sells for $1,320, and a one-year enrollment in yoga classes sells for an additional $550. F&S estimates that approximately 50% of the vouchers will be redeemed. F&S offers a 10% discount on all one-year enrollments in classes as part of its normal promotion strategy. a. & b. Indicate below whether each item is a separate performance obligation. For each separate performance obligation you have indicated, allocate a portion of the contract price. c. Prepare the journal entry to recognize revenue for the sale of a new membership. Assume F&S offers a “Fit…Vail is one of the largest ski resorts in the United States. Suppose that on October 1, 2024, Vail sells gift cards (lift passes) for $116,000. The gift cards are redeemable for one day of skiing during the upcoming winter season. The gift cards expire on April 1, 2025. Customers redeem gift cards of $21,600 in December, $31,600 in January, $26,600 in February, and $16,600 in March. Required: 1. to 4. Record the necessary entries in the JournalABC Company, a department store operates a customer loyalty program.The entity grants program members loyalty points when they spend a specified amount on their products. Program members can redeem the points for future purchases.The points have no expiry date. During 2020, the sales amounted to P 10,000,000 and the entity grants 5 points for every P 100 purchase. Management expects that only 70% of the points will be redeemed. Fair values of products sold and the reward points for the year were P 9,000,000 and P 1,000,000, respectively.As of December 31, 2020, half of the total points granted have already been redeemed. In 2021, the management revised its expectations to 90% of the points will be redeemed. As of December 31, 2021, there is a redemption of 25% of the remaining points.What amount should be reported as revenue earned from loyalty points in 2020?To input answers, kindly follow the sample format below(no peso sign, with comma, no space):ex. 100,000Failure to follow the…
- ABC Company, a department store operates a customer loyalty program.The entity grants program members loyalty points when they spend a specified amount on their products. Program members can redeem the points for future purchases.The points have no expiry date. During 2020, the sales amounted to P 10,000,000 and the entity grants 5 points for every P 100 purchase. Management expects that only 70% of the points will be redeemed. Fair values of products sold and the reward points for the year were P 9,000,000 and P 1,000,000, respectively.As of December 31, 2020, half of the total points granted have already been redeemed. In 2021, the management revised its expectations to 90% of the points will be redeemed. As of December 31, 2021, there is a redemption of 25% of the remaining points.What amount should be reported as revenue earned from loyalty points in 2020?Zilong Company operates a customer loyalty program. The entity grants program members loyalty points when they spend a specified amount on purchases. Program members can redeem the points for further purchases. The points have no expiry date. During 2021 the entity granted 80,000 points. Management expects that 90% of these points will be redeemed. The fair value of each loyalty point is estimated at P20. The sales during 2021 amounted to P9,000,000 including loyalty points. On December 31, 2021, 28,800 points have been redeemed in exchange for purchases. In 2022 the management revised its expectations and expects 85% of the points to be redeemed altogether. During 2022, the entity redeemed 12,000 points. What is the revenue earned from loyalty points for the year ended December 31, 2021?RPS co-op introduced a loyalty program in 2020. every customer who signed up would receive 3% of their total purchases as a cheque, each February for the previuos year, that could br used in sotre on any merchandise eithin the next nine months. customers could look online during the year and check their balance at any time. Laura signed up for the program in 2020. when she purchased a kayak in July for 1100. later in september she purchased a mountain bike for 2200. in March 2021 she purchased a paddle board for 2100 and used her cheque toward the purchase. A) Record the sale of Kayak and loyalty points. B)Record sale of mountain bike and loyalty points C) Record the sales of paddleboard, use of rewards points, cheque towards its purchase and the rewards points earned on sale. D) In 2020 RPS Co-op had a total pf 497,000 in sales to customers who had signed up with the loyalty program. What is the amount of liability that woudl be created by these sale?
- Coronado Frosted Flakes Company offers its customers a pottery cereal bowl if they send in 3 boxtops from Coronado Frosted Flakes boxes and $1. The company estimates that 60% of the boxtops will be redeemed. In 2021, the company sold 1360000 boxes of Frosted Flakes and customers redeemed 660000 boxtops receiving 220000 bowls. If the bowls cost Coronado Company $3 each, how much liability for outstanding premiums should be recorded at the end of 2021? $156000 $280000 $104000 $544000Campus Cellular provides cell phones and 1 year of cell serviceto students for an upfront, nonrefundable fee of $300 anda usage fee of $5 per month. Students may renew the servicefor each year they are on campus (on average, students renewtheir service one time). What amount of revenue shouldCampus Cellular recognize in the first year of the contract?Fit & Slim (F&S) is a health club that offers members various gym services.Required:1. Assume F&S offers a deal whereby enrolling in a new membership for $1,300 provides a year of unlimited access to facilities and also entitles the member to receive a voucher redeemable for 25% off yoga classes for one year. The yoga classes are offered to gym members as well as to the general public. A new membership normally sells for $1,470, and a one-year enrollment in yoga classes sells for an additional $400. F&S estimates that approximately 50% of the vouchers will be redeemed. F&S offers a 10% discount on all one-year enrollments in classes as part of its normal promotion strategy.1. a. & b. Indicate below whether each item is a separate performance obligation. For each separate performance obligation you have indicated, allocate a portion of the contract price.c. Prepare the journal entry to recognize revenue for the sale of a new membership.2. Assume F&S offers a…