AIN3701 Assignment 3 (COMPLETE ANSWERS) 2025 – DUE 8 August 2025; 100% correct solutions and explanations.

AIN3701 Assignment 3 (COMPLETE ANSWERS) 2025 – DUE 8 August 2025; 100% correct solutions and explanations. FitNation Gym. Company background In the heart of Centurion, Gauteng, nestled between buzzing cafes and high-performance office blocks, stands FitNation Gym — a modern health sanctuary for South Africans seeking transformation. FitNation has rapidly evolved from a small startup into one of the country’s most respected gym franchises, with branches in Pretoria, Johannesburg, and Polokwane. More than just a workout space, FitNation is a community-driven brand that believes in data-powered health, structured fitness, and holistic wellbeing. REQUIRED: Marks (a) Open a document in Word. Save this document as yourstudentnumber_S, for example _VanS. Number the following question as: Question 1 (a) in your Word document. Based on the dialogue provided in the assignment, create a fishbone (Ishikawa) diagram to visually map the likely causes of the recent membership decline at FitNation Gym. Hints: - Identify and include at least four root cause categories. - Under each category, provide a minimum of two contributing factors based on the meeting discussion. REQUIRED: Marks (a) Continue to work in the same Word document as mentioned in question 1(a) Number the following question as: Question 2 (a) in your Word document. In line with IFRS 15 - Revenue from Contract with Customers, identify all distinct performance obligations embedded in the 24-month contract with members. 2 (b) Number the following question as: Question 2 (b) in your Word document. Assume a customer sign a 24-month contract on 1 January 2025. Provide the journal entry at inception of the contract (1 January 2025). 7 (c) Number the following question as: Question 2 (c) in your Word document. Assume that no incentive has been met on 31 January 2025. Provide the journal entry for this transaction at month-end, including the receipt of the monthly subscription. 5 (d) Number the following question as: Question 2 (d) in your Word document. Provide the journal entries to account for the following scenario: A customer qualifies the following incentive: • T-shirt Include both revenue recognition and the inventory movement for each item. 4 (e) Number the following question as: Question 2 (e) in your Word document. 2 AIN3701 Assignment 3 2025 12 Assume the 8-week period has passed and the member has not qualified for the gym bag. Prepare the journal entry to reflect this. 20 (a) Please download the Excel file called FitNation_FitStarter_D. Perform this question in this workbook (create a sheet called “A”). When done, save the workbook as yourstudentnumber_Surname_Q (Excel workbook), for example: _VanStaden_Q. Using the dataset provided and the CFO’s instructions in the e-mail, prepare a Revenue Summary in the exact format as instructed. No pivot tables or VBA allowed. 10 (b) Perform this question in the same workbook (create a sheet called “B”) mentioned in question 3 (a). When done, save the workbook as yourstudentnumber_Surname_Q (Excel workbook), for example: _VanStaden_Q. Using the dataset and audit information provided in the CFO’s e-mail, prepare an Inventory Summary in the exact format as instructed. No pivot tables or VBA allowed. 9 (c) Continue to work in the same Word document as mentioned in question 1(a) Number the following question as: Question 3 (c) in your Word document. Using the Inventory Summary Table you prepared in Part B: Briefly comment on any discrepancies you observe between the calculated closing balances and the actual stock count. Are there signs of shrinkage, theft, or poor recordkeeping? Mention at least one key observation. 2 AIN3701 Assignment 3 2025 17 (d) Number the following question as: Question 3 (d) in your Word document. Suggest two practical internal control measures that FitNation could implement to