On apr 1 2008 ob company entered into a 10 yearfranchise

Assignment Help Accounting Basics

Reference no: EM13481515

On Apr 1 2008, OB Company entered into a 10 yearfranchise agreement with a group of individuals. The firm recevies a$300000 initial franchise fee & agrees to assist in the designof the building, help secure financing & provide managementadvice over the 1st half of the franchise agreement.A down payment of 20% of the franchise fee is due onApr 1 2008.

The remaining 80% is to be payable in 8 equalinstallments beginning on Apr 1 2009. Assume that services to beperformed by OB Company between Apr 1 2008 & Aug 15 2008, thedate the franchise opened, are substantial & that theinstallment receivable is reasonably collectible. Also assume thatsubstantial performance of the intial services has occured as ofAug 15 2008.

Prepare the necessary journal entries for OBCompany for April 1 & 15 2008.

Reference no: EM13481515

Questions Cloud

What measures might a company take to obtain valid data for : what measures might a company take to obtain valid data for setting the labor time

Using headings of assets liabilities owners equity : using headings of assets liabilities owners equity netincome show the affect if any from the transactions below.

Torrid romance publishers has total receivables of 2820 : torrid romance publishers has total receivables of 2820 which represents 20 days sales. total assets are 70500. the

Watson clinic is evaluating a project that costs 52100 and : watson clinic is evaluating a project that costs 52100 and has expected annual net cash inflows of 11500 for eight

On apr 1 2008 ob company entered into a 10 yearfranchise : on apr 1 2008 ob company entered into a 10 yearfranchise agreement with a group of individuals. the firm recevies

Keller cosmetics maintains an operating profit margin of 60 : keller cosmetics maintains an operating profit margin of 6.0 and asset turnover ratio of 4.0. a. what is its roa? round

Rearrange the income statement to the contribution margin : here is the questionpresented below is the income statement

Calculate the total amount of cash that michael would pay : michael just graduated from college and has his first job. his salary is that of an entry-level employee so he has to

An investor buys a one-year 1000 face-value us treasury : an investor buys a one-year 1000 face-value us treasury bill or t-bill for 960. the investor expects to receive 1000

User Account

All Pages