Reference no: EM133088011
Questions -
Q1. Max Co. restaurant sold a fast-food restaurant franchise to Irish for a 5-year term. The sale agreement,signed on January 2, 20x1 called for a P100,000 down payment plus two P50,000 annual payments representing the value of initial franchise services rendered by MIKE restaurant. In addition, the agreement required the franchisee to pay 8% royalty based on its gross revenues to the franchisor. The restaurant opened early in 2020 and its sales for the year amounted to P750,000. The prevailing rate for similar note was 12% (PV factor was 1.6901).
The franchise contract requires Max Co. to undertake activities that would significantly affect the affect the franchise license. Although those activities do not result in the transfer of good or service to Irish as those activities occur, it is expected that Irish will benefit from those activities.
How much is the total revenue for 20x1?
Q2. Max Co. restaurant sold a fast-food restaurant franchise to Irish for a 5-year term. The sale agreement, signed on January 2, 20x1 called for a P100,000 down payment plus two P50,000 annual payments representing the value of initial franchise services rendered by MIKE restaurant. In addition, the agreement required the franchisee to pay 8% royalty based on its gross revenues to the franchisor. The restaurant opened early in 2020 and its sales for the year amounted to P750,000. The prevailing rate for similar note was 12% (PV factor was 1.6901).
The franchise contract requires Max Co. to undertake activities that would significantly affect the affect the franchise license. Although those activities do not result in the transfer of good or service to Irish as those activities occur, it is expected that Irish will benefit from those activities.
Which of the following statement is incorrect?
a. A credit to Unearned Interest Income account on January 2 for P15,495
b. A debit to Notes Receivable account for P50,000 on January 2
c. A credit to Franchise Revenue account for P60,000 for royalty fee earned.
d. A credit to Deferred Franchise Revenue for P184,505 on January 2.
|
Would you expect to pay more or less
: If you were to purchase a 12% bond when the market interest rate for such bonds was 13%, would you expect to pay more or less than the face amount for the bond
|
|
Do you agree with the criticism and suggestion
: Kgalagadi Breweries (Botswana) Ltd suffered losses during the COVID 19 pandemic - Do you agree with the criticism and suggestion
|
|
Prepare a depreciation schedule to be used for tax purposes
: Prepare a depreciation schedule to be used for tax purposes for a $60,000 dump truck using the 200% declining-balance method and the mid-year convention
|
|
CO3099 Cryptography and Internet Security Assignment
: CO3099 Cryptography and Internet Security Assignment Help and Solution, University of Leicester - Assessment Writing Service
|
|
How much is the total revenue
: The sale agreement,signed on January 2, 20x1 called for a P100,000 down payment plus two P50,000 annual payments, How much is the total revenue
|
|
Determine the unit cost for the month in curing
: Cost in Curing: Materials 53,830 Labor 10,690 Factory overhead 17,560 Total costs to be accounted for $201,660. Determine the unit cost for the month in Curing
|
|
What is the expected portfolio return
: What is the expected portfolio return? Based on your results in parts (a) and (b), would you be willing to keep this portfolio? Explain
|
|
Advise mintay corporation to purchase the machine
: Mintay Corporation spent $25,000 on a consultant review of their production processes. Would you advise Mintay Corporation to purchase the machine
|
|
How much goodwill is inherent in the purchase price
: The depreciable assets had remaining useful life of 5 years and had been depreciated using straight-line method. How much goodwill is inherent in the purchase
|