Prepare the journal entries under total franchise fee

Assignment Help Managerial Accounting
Reference no: EM132507261

Pacific Cross Burgers inc charges an initial franchise fee of $70,000. Upon the signing agreement (which covers 3 years), a payment of $28,000 is due. Thereafter, three annual payments of $14,000 are required. The credit rating of the franchisee is such that it would have to pay interest at 10% to borrow money. The franchise agreement is signed on May 1, 2017, and the franchise commences operation on July 1, 2017.

Instructions

Question 1: Prepare the journal entries in 2017 for the under the following with no future services are required by the franchiser once the franchise starts operations.

Question 2: Prepare the journal entries in 2017 for the under the following with the franchiser has substantial services to perform, once the franchise begins operations, to maintain the value of the franchise.

Question 3: Prepare the journal entries in 2017 for the under the following with the total franchise fee includes training services (with the value of $2,400) for the period leading up to the franchise opening and for 2 months following opening.

Reference no: EM132507261

Questions Cloud

Theoretical price to yield an annual effective rate : The theoretical price to yield an annual effective rate of 8% is 200.90. Calculate ?.
How to use cognitive-dissonance theory to persuade a change : People who join the helping professions, such as teaching, counseling, and crisis work, often speak about their passion to serve others. If you have ever been.
Electronic health record : Discuss the purposes of implementing an EHR application. Discuss the cost of acquiring and implementing an EHR application.
Determining the minimum price : What is the minimum price Hank would need to receive for his car? Show the work/equation too.
Prepare the journal entries under total franchise fee : Prepare the journal entries in 2017 for the under the following with the total franchise fee includes training services (with the value of $2,400)
What is the compound annual rate implied : What is the compound annual rate implied by this 12.5 percent rate charged for only two weeks? Show your work/equation too.
What is the present value of a payment : What is the present value of a $1,200 payment made every year forever when interest rates are 4.5 percent? Show the work/equation too.
Calculate the profit on units : Suppose management alters its current plans by spending an additional amount of 3,000. Calculate the profit on 65,000 units.
What is the interest rate of a 6-year : What is the interest rate of a 6-year, annual $10,000 annuity with a present value of $45,000? Show the work/equation too.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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