How much of unearned franchise fees from henessy

Assignment Help Financial Accounting
Reference no: EM132942829

Problem 1: Barry Company authorized Henessy on January 1, 2010 to operate as a franchisee for an initial franchise fee of $2,500,000. Of this amount, $1,500,000 was received upon signing of the contract and the balance is due in two equal annual payments beginning January 1, 2011. The contract provides that the nonrefundable down payment represents fair measure of the services already performed, however, substantial performance is still required of Barry. Collectability of the note is reasonably certain. If the present value of the two annual payments is $895,000, how much of unearned franchise fees from Henessy should Barry report on December 31, 2010?

Reference no: EM132942829

Questions Cloud

The cost of this alternative is what percentage : The controller of company has identified a number of sources. Assume a 360-day year in all of your calculations. The cost of this alternative is what percentage
What amount of unearned franchise fees from heart : What amount of unearned franchise fees from Heart should Brave report on December 31, 2010? Solve the following problem in good accounting form.
How much is the salaries expense at june : Assume the pay period ends on Friday 3rd July and the financial year ends on 30th June. How much is the salaries expense at June
Find how much of net income should have been recognized : During 2009, Main Corporation, Inc. started work on a $5,200,000. How much of net income or loss should have been recognized in 2009?
How much of unearned franchise fees from henessy : If the present value of the two annual payments is $895,000, how much of unearned franchise fees from Henessy should Barry report on December 31, 2010?
Determine the amount for impairment loss : Determine the amount for "Impairment loss/Recovery of impairment loss" to be reported on the Income Statement on December 31, 2022
How much was the amount of collection : How much was the amount of collection in 2009? Sunny Corporation began constructing a building with a contract price of $43,800,000 in 2009.
What type of report is a white paper : What type of report is a White Paper? Explain your choice, supported by research.
What cost can be attributed to contract activity : If the initial fee is collectible over an extended period and there is a significant uncertainty of its collection in full, the fee will be?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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