Reference no: EM131100173
Exercise 5-15 Franchises; residual method [LO5-6, 5-7] Monitor Muffler sells franchise arrangements throughout the United States and Canada. Under a franchise agreement, Monitor receives $600,000 in exchange for satisfying the following separate performance obligations: (1) franchisees have a five-year right to operate as a Monitor Muffler retail establishment in an exclusive sales territory, (2) franchisees receive initial training and certification as a Monitor Mechanic, and (3) franchisees receive a Monitor Muffler building and necessary equipment. The stand-alone selling price of the initial training and certification is $15,000, and $450,000 for the building and equipment. Monitor estimates the stand-alone selling price of the five-year right to operate as a Monitor Muffler establishment using the residual approach. Monitor received $75,000 on July 1, 2016, from Perkins and accepted a note receivable for the rest of the franchise price. Monitor will construct and equip Perkins' building and train and certify Perkins by September 1, and Perkins' five-year right to operate as a Monitor Muffler establishment will commence on September 1 as well.
1. What amount would Monitor calculate as the stand-alone selling price of the five-year right to operate as a Monitor Muffler retail establishment? $135.000
2. What journal entry would Monitor record on July 1, 2016, to reflect the sale of a franchise to Dan Perkins? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 7/1/16 Cash 75,000 (debit) 525,000 (debit) 600000 (credit)
3. How much revenue would Monitor recognize in the year ended December 31, 2016, with respect to its franchise arrangement with Perkins? (Ignore any interest on the note receivable.) Total Revenue ????
Discuss and compare these two studies in terms of precision
: What steps can be taken generally to attain higher precision and accuracy?
|
Face amount plus accrued interest
: Bocelli Co. purchased $117,000 of 9%, 20-year Sanz County bonds on May 11, 2016, directly from the county, at their face amount plus accrued interest. The bonds pay semiannual interest on April 1 and October 1.
|
Compare the implied and real annual volatilities
: The ADDITIONAL objectives of the second part of the project are: Set up different trading strategies using stocks and/or indices and options. Calculate implied volatility and compare with real volatility. Compare the implied and real annual volatilit..
|
Question regarding the environmental degradation
: If, according to the deep green approach, we should not do anything that involves environmental degradation, does this imply that the cost of environmental damage is infinite?
|
Calculate as the stand-alone selling price
: Exercise 5-15 Franchises; residual method [LO5-6, 5-7] Monitor Muffler sells franchise arrangements throughout the United States and Canada. Under a franchise agreement, Monitor receives $600,000 in exchange for satisfying the following separate p..
|
How are you or have you been affected by database security
: Top management, Senior IT Management, Database Administrator, Database Designer, and Database User - How familiar do people in these positions need to be with regard to database security generally and to particular issues like SQL injection?
|
Right choice between the available makes
: Assume that you have decided to buy a new video recorder. How do you set about ensuring that you make the right choice between the available makes?
|
What is the time required to reach a conversion of 70 prcnt
: what is the time required to reach a conversion of 70 percent?
|
Little effective competition from other eu countries
: Why might a firm producing bricks have an MES which is only 0.2 percent of total EU production and yet face little effective competition from other EU countries?
|