What entry is required by the franchisor on november

Assignment Help Financial Accounting
Reference no: EM132960735

Clown Co., a company that has created a unique art training program, sells franchise licenses to qualified individuals to open a Clown Studio. Charges associated with acquiring a Clown studio franchise are as follows:

  • an initial franchise fee of $323,000 which consist of the following:
    rights to trade name, market area, and proprietary know-how $120,000
    equipment (cost of $45,700) 145,000
    training services 58,000

Upon signing of the agreement, a payment of $100,000 is due. Thereafter, two annual payments of $111,500 are required. The credit rating of the one particular franchisee, Art I. Talented, is such that Art would have to pay interest of 8% to borrow money. The franchise agreement is signed by Art and Clown on August 1, 2026, and the franchise begins operations on November 1, 2026.

Problem 1: What entry is required by the franchisor on August 1, 2026?

Problem 2: What entry is required by the franchisor on November 1, 2026?

Reference no: EM132960735

Questions Cloud

What is self-awareness : What is self-awareness. What is self-assessment Describe the ways through which an individual can build self-awareness
What journal entries would periwinkle make : What journal entries would Periwinkle make in 2022 related to the above? The company recorded a Litigation Loss in 2022 of $70,000 and expects to pay.
Forces that drive change and encourage innovation : What are the forces that drive change and encourage innovation?
What is the yield to maturity : The bonds mature in 6.5 years, sell at par, and have a $1,000 face value. What is the yield to maturity
What entry is required by the franchisor on november : Clown Co., a company that has created a unique art training program, What entry is required by the franchisor on November 1, 2026?
Evaluate the performance using the roi : Knowing that the cost of opportunity is 3%, corporate tax is 21%, evaluate the performance using the ROI, RI and EVA concepts
What amount of revenue would cheapskate record on february : Purchasing an additional $450,000 worth of products throughout the year. What amount of revenue would Cheapskate record on February 1, 2025?
What is the average inventory held : What is the average inventory held during the year including safety stock if the store insists on a 1 days safety stock (assume 365 days a year)
What amount will be posted to wilson peters capital : What amount will be posted to Wilson Peters Capital in the process of closing the income salary account, assuming all accounts have normal balances?

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