Carla Inc. charges an initial franchise fee of $71,000. Upon the signing of the agreement (which covers 3 years), a payment of $28,400 is due. Thereafter, 3 annual payments of $14,200 are required. The credit rating of the franchisee is such that it would have to pay interest at 8% to borrow money. The franchise agreement is signed on May 1, 2017, and the franchise commences operation on July 1, 2017. Prepare the journal entries in 2017 for the franchisor under the following assumptions. (a) No future services are required by the franchisor once the franchise starts operations (b) The franchisor has substantial services to perform, once the franchise begins operations, to maintain the value of the franchise (c) The total franchise fee includes training services (with a value of $2,800) for the period leading up to the franchise opening and for 2 months following opening (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Round present value factor calculations to 5 decimal places, e. g.1.25124 and the final answer to o decimal places e. g. 58,971.)
Answers: 2
Other questions on the subject: Business
Business, 22.06.2019 12:30, ash011519
On june 1, 2017, blossom company was started with an initial investment in the company of $22,360 cash. here are the assets, liabilities, and common stock of the company at june 30, 2017, and the revenues and expenses for the month of june, its first month of operations: cash $4,960 notes payable $12,720 accounts receivable 4,340 accounts payable 840 service revenue 7,860 supplies expense 1,100 supplies 2,300 maintenance and repairs expense 700 advertising expense 400 utilities expense 200 equipment 26,360 salaries and wages expense 1,760 common stock 22,360 in june, the company issued no additional stock but paid dividends of $1,660. prepare an income statement for the month of june.
Answers: 3
Business, 23.06.2019 02:20, J3ak06
Kubin company’s relevant range of production is 18,000 to 22,000 units. when it produces and sells 20,000 units, its average costs per unit are as follows: average cost per unit direct materials $ 7.00 direct labor $ 4.00 variable manufacturing overhead $ 1.50 fixed manufacturing overhead $ 5.00 fixed selling expense $ 3.50 fixed administrative expense $ 2.50 sales commissions $ 1.00 variable administrative expense $ 0.50 required: 1. for financial accounting purposes, what is the total amount of product costs incurred to make 20,000 units? 2. for financial accounting purposes, what is the total amount of period costs incurred to sell 20,000 units? 3. for financial accounting purposes, what is the total amount of product costs incurred to make 22,000 units? 4. for financial accounting purposes, what is the total amount of period costs incurred to sell 18,000 units?
Answers: 1
Business, 23.06.2019 04:50, sariyamcgregor66321
Can someone me with general journal entry on this? ?
Answers: 3
Do you know the correct answer?
Carla Inc. charges an initial franchise fee of $71,000. Upon the signing of the agreement (which cov...
Questions in other subjects:
Geography, 25.10.2019 04:43
Mathematics, 25.10.2019 04:43
Biology, 25.10.2019 04:43
Social Studies, 25.10.2019 04:43
History, 25.10.2019 04:43
