Make all of the journal entries

Assignment Help Financial Accounting

Reference no: EM133713

Question :

BodyTone Company sells lifetime health club memberships. For one up-front, nonrefundable fee, a customer becomes a lifetime member of BodyTone's network of health clubs.

The fee is $2,000. The fee adds full access to all of the club facilities plus an initial comprehensive physical, spiritual and mental wellness evaluation. The wellness evaluation is regularly sold separately for $400. Occasionally, BodyTone sells lifetime memberships without the wellness appraisal; the price is $1,750. BodyTone will reliably evaluate that the average customer will use the health club facilities for five years. On 1^st January, 2013, BodyTone received lifetime membership payments from 300 new customers. The direct cost of giving a wellness evaluation is $70, and the direct cost of giving health club access for one person for one year is $250. All of the wellness evaluations were completed during 2013. Make all of the journal entries essential in 2013 in connection with these 300 new memberships. Consider that all costs were incurred in cash.

Reference no: EM133713

Questions Cloud

Explain what is a telecommunications standard : Explain what is a telecommunications standard

Evaluate the interest rate on the company''s note payable : Evaluate the interest rate on the company's note payable? The 2013 rent payment was made at the starting of which month? How much did Eldorado lend its customer on Oct 31?

What are the sources of power available to a leader : Explain how the leader fulfils his role as a motivator in the organisation Briefly comment on Maslow's hierarchy of needs theory of motivation What are the sources of power available to a leader

Determine the unit cost of labor per class for last month : Determine the unit cost of labor (per class) for last month? How many classes would be provided if Bo increased the number of classes provided by 100 %?

Make all of the journal entries : Make all of the journal entries essential in 2013 in connection with these 300 new memberships. Consider that all costs were incurred in cash.

Tourism development strategy : Tourism is at the crossroads of economic, social and environmental contemplations, tourism planning and development policy, importance and responsibility of tourism in the new green economy and its role in poverty alleviation

Prepare the bank reconciliation : Using the code letters below, show how each of the items listed could be handled in preparing bank reconciliation.

Elements of the accounting equation : Total dollar of each of the elements of the accounting equation

Explain how a leader can enhance the performance in a team : Explain how a leader can enhance the performance in a team Discuss the Hersey and Blanchard theory of situational leadership and explain how it can ensure employee readiness towards their tasks

User Account

All Pages