Ivanhoe Diners Inc. charges an initial franchise fee of $186000 broken down as follows: Rights to...
Ivanhoe Diners Inc. charges an initial franchise fee of $186000
broken down as follows:
| Rights to trade name, market area, and proprietary know-how | $82000 |
| Training services | 25000 |
| Equipment (cost of $22600) | 79000 |
| Total initial franchise fee | $186000 |
Upon signing of the agreement, a payment of $82000 is due.
Thereafter, 2 annual payments of $52000 are required. The credit
rating of the franchisee is such that it would have to pay interest
of 9% to borrow money. The franchise agreement is signed on August
1, 2021, and the franchise commences operation on November 1, 2021.
Assume that the total training fees includes training services for
the period leading up to the franchise opening ($11200 value) and
for 3 months following opening. The journal entry on August 1, 2021
would include
Homework Answers
| a credit to Unearned Service Revenue for $25000. |
It will be unearned revenue for Ivanhoe on Aug 1 because the franchise commences operation on November 1, 2021
Add Answer to:
Ivanhoe Diners Inc. charges an initial franchise fee of $186000
broken down as follows:
Rights to...
Cullumber Diners Inc. charges an initial franchise fee of $147000 broken down as follows: Rights to...
Cullumber Diners Inc. charges an initial franchise fee of
$147000 broken down as follows:
Rights to trade name, market area, and proprietary
know-how
$69000
Training services
12000
Equipment (cost of $16100)
66000
Total initial franchise fee
$147000
Upon signing of the agreement, a payment of $69000 is due.
Thereafter, 2 annual payments of $39000 are required. The credit
rating of the franchisee is such that it would have to pay interest
of 8% to borrow money. The franchise agreement is...
Exercise 18-38 Pearl Inc. charges an initial franchise fee of $75,000. Upon the signing of the...
Exercise 18-38 Pearl Inc. charges an initial franchise fee of $75,000. Upon the signing of the agreement (which covers 3 years), a payment of $30,000 is due. Thereafter, 3 annual payments of $15,000 are required. The credit rating of the franchisee is such that it would have to pay interest at 9% 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...
E18-39 (LO8) (Franchise Fee, Initial Down Payment) On January 1, 2017, Lesley Benjamin signed an agreement,...
E18-39 (LO8) (Franchise Fee, Initial Down Payment) On January 1, 2017, Lesley Benjamin signed an agreement, covering 5 years, to operate as a franchisee of Campbell Inc. for an initial franchise fee of $50,000. The amount of $10,000 was paid when the agreement was signed, and the balance is payable in five annual payments of $8,000 each, beginning January 1, 2018. The agreement provides that the down payment is nonrefundable and that no future services are required of the franchisor...
On January 1, 2020, Lesley Benjamin signed an agreement, covering 5 years, to operate as a...
On January 1, 2020, Lesley Benjamin signed an agreement,
covering 5 years, to operate as a franchisee of Pronghorn Inc. for
an initial franchise fee of $46,000. The amount of $9,000 was paid
when the agreement was signed, and the balance is payable in five
annual payments of $7,400 each, beginning January 1, 2021. The
agreement provides that the down payment is nonrefundable and that
no future services are required of the franchisor once the
franchise commences operations on April...
Exercise 18-39 On January 1, 2020, Lesley Benjamin signed an agreement, covering 5 years, to operate...
Exercise 18-39
On January 1, 2020, Lesley Benjamin signed an agreement,
covering 5 years, to operate as a franchisee of Bonita Inc. for an
initial franchise fee of $51,000. The amount of $11,000 was paid
when the agreement was signed, and the balance is payable in five
annual payments of $8,000 each, beginning January 1, 2021. The
agreement provides that the down payment is nonrefundable and that
no future services are required of the franchisor once the
franchise commences operations...
On January 1, 2017, Lesley Benjamin signed an agreement, covering 5 years, to operate as a...
On January 1, 2017, Lesley Benjamin signed an agreement,
covering 5 years, to operate as a franchisee of Coronado Inc. for
an initial franchise fee of $64,000. The amount of $13,000 was paid
when the agreement was signed, and the balance is payable in five
annual payments of $10,200 each, beginning January 1, 2018. The
agreement provides that the down payment is nonrefundable and that
no future services are required of the franchisor once the
franchise commences operations on April...
On January 1, 2020, Lesley Benjamin signed an agreement, covering 5 years, to operate as a...
On January 1, 2020, Lesley Benjamin signed an agreement, covering 5 years, to operate as a franchisee of Pearl Inc. for an initial franchise fee of $36,000. The amount of $11,000 was paid when the agreement was signed, and the balance is payable in five annual payments of $5,000 each, beginning January 1, 2021. The agreement provides that the down payment is nonrefundable and that no future services are required of the franchisor once the franchise commences operations on April...
Cullumber Diners Inc. charges an initial franchise fee of
$147000 broken down as follows:
Rights to trade name, market area, and proprietary
know-how
$69000
Training services
12000
Equipment (cost of $16100)
66000
Total initial franchise fee
$147000
Upon signing of the agreement, a payment of $69000 is due.
Thereafter, 2 annual payments of $39000 are required. The credit
rating of the franchisee is such that it would have to pay interest
of 8% to borrow money. The franchise agreement is...
Exercise 18-38 Pearl Inc. charges an initial franchise fee of $75,000. Upon the signing of the agreement (which covers 3 years), a payment of $30,000 is due. Thereafter, 3 annual payments of $15,000 are required. The credit rating of the franchisee is such that it would have to pay interest at 9% 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...
On January 1, 2020, Lesley Benjamin signed an agreement,
covering 5 years, to operate as a franchisee of Pronghorn Inc. for
an initial franchise fee of $46,000. The amount of $9,000 was paid
when the agreement was signed, and the balance is payable in five
annual payments of $7,400 each, beginning January 1, 2021. The
agreement provides that the down payment is nonrefundable and that
no future services are required of the franchisor once the
franchise commences operations on April...
Exercise 18-39
On January 1, 2020, Lesley Benjamin signed an agreement,
covering 5 years, to operate as a franchisee of Bonita Inc. for an
initial franchise fee of $51,000. The amount of $11,000 was paid
when the agreement was signed, and the balance is payable in five
annual payments of $8,000 each, beginning January 1, 2021. The
agreement provides that the down payment is nonrefundable and that
no future services are required of the franchisor once the
franchise commences operations...
On January 1, 2017, Lesley Benjamin signed an agreement,
covering 5 years, to operate as a franchisee of Coronado Inc. for
an initial franchise fee of $64,000. The amount of $13,000 was paid
when the agreement was signed, and the balance is payable in five
annual payments of $10,200 each, beginning January 1, 2018. The
agreement provides that the down payment is nonrefundable and that
no future services are required of the franchisor once the
franchise commences operations on April...
On January 1, 2020, Lesley Benjamin signed an agreement, covering 5 years, to operate as a franchisee of Pearl Inc. for an initial franchise fee of $36,000. The amount of $11,000 was paid when the agreement was signed, and the balance is payable in five annual payments of $5,000 each, beginning January 1, 2021. The agreement provides that the down payment is nonrefundable and that no future services are required of the franchisor once the franchise commences operations on April...
Most questions answered within 3 hours.
-
A solid, uniform disk of radius 0.250 m and mass 53.7 kg rolls
down a ramp...
asked 39 minutes ago -
Given the following table of high speed internet access vs.
annual home income:
Home Income
%...
asked 1 hour ago -
A baseball batter hits a 0.145kg baseball straight up into the
air. The baseball leaves the...
asked 1 hour ago -
An FM modulator is tested using
single-tone baseband signal with frequency of 50kHz and a sprectrum...
asked 1 hour ago -
Write the ionic equations for the first stage of salts
hydrolysis.
Anion, Cation?
Na2S
NiSO4
K2SO4...
asked 3 hours ago -
suppose there is a normally distributed population with a mean of
250 and a standard deviation...
asked 4 hours ago -
Question Three
Suppose you as project manager are using the Waterfall
development methodology on a large...
asked 5 hours ago -
Which statement is not true about welfare in Canada?
A.Benefits typically vary based on one's ability...
asked 5 hours ago -
Please help me with FLOWCHART and UML diagram for class,
thank you!
#include <iostream>
#include <fstream>...
asked 6 hours ago -
3. Describe the “logic circuit” of the Lac operon. Which
proteins are bound or not to...
asked 6 hours ago -
Ayesha’s adjusted gross income is $60,000 in 2019. She donated a
piece of artwork with a...
asked 6 hours ago -
For Dijkstra’s shortest path algorithm:
a. Give the Big-O time for Dijkstra’s shortest path algorithm
and...
asked 6 hours ago