Find the amount of realized franchise fee revenue

Assignment Help Accounting Basics
Reference no: EM132858287

Question - Philip's entered into a franchise agreement with Rusty. As per agreement on July 1, 2016, Rusty is to pay Philip an up-front franchise fee of 1,000,000 and subsequent annual franchise fees of 50,000 over the next four years. Cost of initial franchise services rendered by Philip's during the year is 250,000 which is substantial, and it estimates the cost of subsequent annual services to be 10,000. Rusty paid the annual franchises fee for 2017, and Philip's rendered the services for the year. In its December 31, 2017 income statement, find the amount of realized franchise fee revenue to be reported by Philip's?

a. 250,000

b. 25,000

c. 50,000

d. 300,000

Reference no: EM132858287

Questions Cloud

Find the critical value and make anova table : In a completely randomized design, 7 experimental unites were used for each of the three levels of the factor.
What is the price of each bond today : What is the price of each bond today? If interest rates remain unchanged, what do you expect the price of these bonds to be 1 year from now
Determine the conditional probability : On your way home after a late night of studying Bayes' rule you come across a mysterious hooded figure standing behind a table displaying
What is the first and third quartiles scores for the exam : The scores on the exam is normally distributed with a mean of 65 and SD of 5. What is the first and third quartiles scores for the exam?
Find the amount of realized franchise fee revenue : In its December 31, 2017 income statement, find the amount of realized franchise fee revenue to be reported by Philip's
How many different rankings are possible : Assume that no two students obtain the same score. (a) How many different rankings are possible?
Find distribution of oregon residents : An urban economist is curious if the distribution in where Oregon residents live is different today than it was in 1990. She observes that today
What is the selling price : Jen plans to set the selling price for the new men's hat at 200% of variable production cost. If the forecast sales volume is 100 hats, what is selling price
Prepare production cost report for October : Smith Electronic Company's chip-mounting production department had 300 units of unfinished product, Prepare production cost report for October

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determining the restructuring program

In reporting to its U.K.- based on IFRS, provide all journal entries for June 1st 2004, June 30th 2004, October 31st 2004, Nov 30th 2004 for restructuring program.

  What is Anne realized gain

Installed an elevator for medical reasons. The total cost was $20,000, and Anne deducted $13,000 as medical expenses. What is Anne realized gain

  What is its return on stockholders equity

Network Communications has total assets of $1,760,000 and current assets of $642,000. What is its return on stockholders equity

  Discuss common stock of the company

common stock of the company June 30, 2017, and the revenues and expenses for the month of June

  Calculate the individual account balances

You will need to calculate the individual account balances for the Total Combined Funds and GCA/GLTL Accounts. Then you are to prepare all of the adjusting, elimination, and reclassification entries on the worksheet that are necessary to compute t..

  The new cfo believes that the company could improve its

soenen inc. had the following data for 2008. the new cfo believes that the company could improve its working capital

  List three expense accounts related to payroll

Describe when you would expect the account to be cleared to zero. Explain the methods you could use to reconcile these accounts.

  Construct the balance sheet

The assets of the firm are financed with equity and zero-coupon debt with face value 80. Construct the balance sheet

  Record the journal entries for goldman corporation

Record the Amortization on the leased asset using straight-line amortization at December 31, 2020 journal entries for Goldman Corporation

  Prepare a straight lone depreciation table

The estimated useful life of the asset is 4.5 years, Residual value of the asset is estimated Rs=5550/-. now (prepare) a straight lone depreciation table?

  Which amounts would be added to the checkbook balance

To reconcile the bank statement, which of the amounts would be added to the checkbook balance? amounts collected by the bank for the depositor's account

  Calculate Irenes maximum contribution to a Roth IRA

Irene (a single taxpayer, under age 50) has a salary of $114,500 and dividend income of $10,000. Calculate Irene's maximum contribution to a Roth IRA

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd