eLean is an online fitness community, offering access to workout routines, nutrition advice, and eLean coaches.Customers pay a $50 fee to become registered on the website, and then pay $5 per month for access to all eLeanservices. How many performance obligations exist in the implied contract when a customer registers for theservices?
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eLean is an online fitness community, offering access to workout routines, nutrition advice, and eLean coaches.
Customers pay a $50 fee to become registered on the website, and then pay $5 per month for access to all eLean
services. How many performance obligations exist in the implied contract when a customer registers for the
services?
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- GenX is a career training company that offers both online and on-campus weekend training courses on web development, data science, coding, and digital marketing. The accompanying data file shows the courses that will be offered next month by GenX. The data set contains course name (Course), whether the course is offered online or on-campus (Mode), current enrollment (Enrollment), tuition per student (Tuition), cost of instructors (Instructor costs), facility costs (Facility costs), technical service costs (Technical services), and historical cancellation rate for the course (Cancellation rate). Only on-campus courses incur facility costs. Online courses carry much higher costs for technical services than on-campus courses. The historical cancellation rate is used to project the actual enrollments of the courses. GenX would like to develop a spreadsheet model that calculates the projected revenue and profit for the month. Course Mode Enrollment Tuition Instructor costs Facility…Pacifica Fitness Ltd is marketing a 'fitness package' in which, for $440, it provides customers with a 6-month gym membership (which retails separately for $500, a gym bag (which retails separately for $35) and five free zumba classes (which retail separately for 65). You are required to determine: a) Separate performance obligations and how much of the transaction price to allocate to each performance obligation.You are a management accountant for Time Treasures Company, whose company has recently signed an outsourcing agreement with Spotless. Inc., a janitorial service company. Spotless will provide all of Time Treasures janitorial services, including sweeping floors, hauling trash, washing windows, stocking restrooms, and performing minor repairs. Time Treasures will be billed at an hourly rate based on the type of service performed. The work of common laborers (sweeping, hauling trash) is to be billed at $8 per hour. More skilled (repairs) and more dangerous work (washing outside windows on the 23rd floor) are to be billed at $18 per hour. Supervisory time is to be billed at $20 per hour. Spotless will submit monthly invoices, which will show the number and types of hours for which Time Treasures is being charged. The outsourcing contract is simple and straightforward. A. What are some of the internal control problems you foresee as a result of our sourcing the janitorial service with this contract? B. Explain recommendations to control risk that would you suggest after reviewing the contract.
- Cornwall Mobile Detailing (CMD) is a service that washes and details a customer's vehicle at their home or office. It operates on a membership basis. Members pay $200 dues per month, which entitle them to a complete wash and detail service monthly. Members may also order additional car washes during the month at a fee of $75. Additional washes are common in both summer and winter months. The number of members also varies with the season. The number of members and the average number of additional washes by members for the months of interest follow: Members Additional Washes (Average per Member) January 360 0.8 February 420 1.1 March 980 0.7 April 1,120 0.6 May 1,150 0.9 June 1,300 1.4 Cornwall allows members to pay for dues on credit. Cornwall's experience is that 40 percent of its members pay cash for the dues, 50 percent of the members pay the dues for a month in the next month, 5 percent in the second month after. The remainder is uncollectible. Additional…For each of the following items, indicatewhether that item would be considered to be a transaction at Gerbig Pet Grooming Corporation.a. A customer, Layne Gracen, gives Gerbig a check for $620 to prepay for her dog’sgrooming appointments for the upcoming year.b. Gerbig pays $310 for last month’s electric bill.c. Gerbig selects a new supplier for its shampoos and conditioners.d. The controller for Gerbig pays the bill for a catered lunch at its annual training event foremployees.e. Gerbig files its articles of incorporation with the state.f. Gerbig acquires a new stainless steel tub by signing a note payable with PetStar, a supplier of pet grooming supplies and products.g. Maggie Cramer, a customer, signs a contract for next year’s dog grooming with Gerbig.h. Gerbig pays its employees an annual bonus on December 31.Consider each of the following independent situations for Sunrise Tours, a company owned by David Bartlett that sells motor coach tours to schools and other groups. Sunshine Tours owns a fleet of 10 motor coaches and employs 12 drivers, 1 maintenance technician, 3 sales representatives, and an office manager. Sunshine Tours pays for all fuel and maintenance on the coaches. Drivers are paid $0.50 per mile while in transit, plus $15 per hour while idle (time spent waiting while tour groups are visiting their destinations). The maintenance technician and office manager are both full-time salaried employees. The sales representatives work on straight commission. Q. One of the motor coach drivers seems to be reaching his destinations more quickly than any of the other drivers and is reporting longer idle time.
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- BMC has successfully built a practice that services small businesses by providing accounting related services. BMC will provide free training and initial implementation of accounting records through QuickBooks but requires a monthly subscription in order to access the account information. This training is otherwise provided for a one-time fee of $10,000. Upon subscription ($10k/month), BMC will perform all related accounting functions for the small business using QuickBooks. The subscription requires a 3 year contract. Premium Services can be purchased at a 20% discount, if included in the contract, which includes 24/7 direct hotline to senior accountants within BMC. The Premium Services are routinely sold at standalone prices of $100/hr. BMC estimates that a typical client will utilize this service on average of 40 hours a month. Perform the 5 steps of Revenue Recognition assuming a client purchased the maximum package. Assume the estimate and actual hours for Premium Services has no…Pacifica Fitness Ltd Is Marketing A 'Fitness Package' In Which, For $400, It Provides Customers With A 6-Month Gym Membership (Which Retails Separately For $530, A Gym Bag (Which Retails Separately For $32) And Five Free Zumba Classes (Which Retail Separately For 69). You Are Required To Determine: (10 Marks) A) Separate Performance Obligations And How Much Pacifica Fitness Ltd is marketing a 'fitness package' in which, for $400, it provides customers with a 6-month gym membership (which retails separately for $530, a gym bag (which retails separately for $32) and five free zumba classes (which retail separately for 69). You are required to determine: a) Separate performance obligations and how much of the transaction price to allocate to each performance obligation. Good or Service Stand-alone Price Discount Allocation Allocated Amount Total b) Pacifica Fitness Ltd sold 19 packages advance and receive first payment on 30 May 2023.…Sunrise Tours, a company owned by David Bartlett that sells motor coach tours to schools and other groups. Sunshine Tours owns a fleet of 10 motor coaches and employs 12 drivers, 1 maintenance technician, 3 sales representatives, and an office manager. Sunshine Tours pays for all fuel and maintenance on the coaches. Drivers are paid $0.50 per mile while in transit, plus $15 per hour while idle (time spent waiting while tour groups are visiting their destinations). The maintenance technician and office manager are both full-time salaried employees. The sales representatives work on straight commission. Q.Regular preventive maintenance of the motor coaches has been proven to improve fuel efficiency and reduce overall operating costs by averting costly repairs. During busy months, however, it is difficult for the maintenance technician to complete all of the maintenance tasks within his 40-hour workweek.