What amount of net unearned franchise

Assignment Help Financial Accounting
Reference no: EM131803174

Each of Potter Pie Co.'s twenty-one new franchisees contracted to pay an initial franchise fee of $30,000. By December 31, 2010, each franchisee had paid a nonrefundable $10,000 fee and signed a note to pay $10,000 principal plus the market rate of interest on December 31, 2011, and December 31, 2012. Experience indicates that one franchisee will default on the additional payments. Services for the initial fee will be performed in 2011. What amount of net unearned franchise fees would Potter report at December 31, 2010?

Reference no: EM131803174

Questions Cloud

What amount of deferred gross profit should blake : On January 2, 2010, Blake Co. sold a used machine to Cooper, Inc. for $900,000, resulting in a gain of $270,000. On that date, Cooper paid $150,000.
Identify the market position that this service has : Discuss the potential effect of repositioning the service and what the company would need to do to reposition the service.
How will you use the given tools in your plan : What are the best tools to use in this situation? Why do you think these are the best ways to analyze the market? How will you use these tools in your plan?
What is the natural enemy of justice : What is the Natural Enemy of Justice? What does nonviolence attempt to prove?Although historically, we look at the civil rights movement as a contrast.
What amount of net unearned franchise : Services for the initial fee will be performed in 2011. What amount of net unearned franchise fees would Potter report at December 31, 2010?
Describe how social media is used for your service : What recommendations would you make to use/change how social media is used advantageously for your service?
What is the effect on earnings in the year after the shares : what is the effect on earnings in the year after the shares are granted to executives
Prepare journal entries for events for the month of may : Use information to prepare journal entries for the following events for the month of May. Raw materials purchases for cash
Determining the distributor of machinery : Lin Co., a distributor of machinery, bought a machine from the manufacturer in November 2010 for $10,000. On December 30, 2010

Reviews

Write a Review

Financial Accounting Questions & Answers

  Practice cost based pricing and target pricing

Describe how your business can practice cost based pricing and target pricing. For example, look at the menu of a restaurant (competitors) and estimate what are profit margins, fixed costs, and variable costs of your competitors. Can your restaurant ..

  Prepare income statements for both years

Required: Prepare income statements for both years using both absorption and variable costing methods.

  What is the amount of finished goods inventory

During its first year of operations, Silverman Company paid $15,085 for direct materials and $10,200 for production workers' wages. Lease payments and utilities on the production facilities amounted to $9,200 while general, selling, and administrativ..

  Calculate cash received at issuance

On January 1, 2009, Clintwood Corporation issued a $1,000, ten-year, 10% bond payable (interest payable each December 31). For the three assumptions below, provide the following information assuming the accounting year ends December 31, and straig..

  Prepare the journal entry to record bad debt expense

Prepare the journal entry to record bad debt expense assuming Riverbed Company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but Allowance for Doubtful Accounts had a $1,570 debit balance.

  How much additional tax they will personally pay

June and John decide to form a business. They each plan to contribute 20,000 in exchange for a 50percent interest in the business. They will then take out a bank loan for 30,000 to cover the balance of their working capital needs. They want to know h..

  Research an unusual or conflicting accounting principle

Identify the core functions of each department, their strengths and weaknesses, and make recommendations for improvement, as appropriate

  Next months net operating income from the current month

Topeka Company's income statement for the current month shows that the company sold 400,000 units of its product and earned a net operating income of $600,000. Management is very pleased with the result and believes the company's strong financial pos..

  What were total cost of units completed during the period

Department S had no work in process at the beginning of the period. 10,420 units of direct materials were added during the period at a cost of $72,940, 7,815 units were completed during the period, and 2,605 units were 32% completed as to labor and o..

  What are the critical deficiencies

­Do you think the recommendations put forth in the Exposure Draft are likely to be successful or not? If successful, what are the most significant attributes? If not successful, what are the critical deficiencies?

  Calculate the project''s npv at a cost of capital

Calculate the project's NPV at a cost of capital of 8%. Calculate the project's IRR and what concerns might Jason and Sons have regarding this project beyond considering the financial calculations?

  Prepare donn communications cash budget

Prepare Donn Communications' cash budget for 2012. Will the budgeted level of cash receipts leave Donn with the desired ending cash balance of $79 million, or will the company need additional financing? If so, how much?

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