What is the total income to be recognized by vien inc

Assignment Help Accounting Basics

Reference no: EM132809509

Question

Vien Inc. granted a franchise to Junnie Inc. to operate its registered business of computer shop. The contract was signed on January 1, 2020 with initial franchise fee of P500,000 payable in P200,000 cash and the balance in five equal semi-annual installments every June 30 and December 31. The non-interest bearing promissory note (reasonably assured) has implicit rate of 10% (PY. Factor = 4.32948).

The contract provides that Junnie Inc. shall pay contingent franchise fee equal to 5% of the revenue from the computer shop. Junnie Inc. reported a revenue in the amount of P100,000 during 2020.

Vien Inc. has substantially performed all the services required under the franchise contract.

-What is the total income to be recognized by Vien Inc. for the year ended December 31, 2020?2.How much is the Total Franchise Revenue for the year ended December 31, 2020?

Reference no: EM132809509

Questions Cloud

Should the old riveting machine be replaced by the new one : Should the old riveting machine be replaced by the new one - The firm's marginal tax rate is 40 percent, and the firm's required rate of return is12 percent.

Prepare the journal entry to record depletion : Prepare the journal entry to record depletion of the Mineral deposit at December 31 and Prepare the journal entry to record depreciation of the machine

Determine the dollar amounts that towson : Determine the dollar amounts that Towson will report on its year end Balance Sheet for Paid in Capital Common Stock in Excess of par

Calculate total interest income and total interest expenses : Calculate the total interest income and total interest expenses for 2020.

What is the total income to be recognized by vien inc : What is the total income to be recognized by Vien Inc. for the year ended December 31, 2020?2.How much is the Total Franchise Revenue for the year ended Decembe

Independence with respect to hamilton services : which of the following situations would impair the firm's independence with respect to Hamilton Services for the December 31, 20X2 audit engagement

Prepare the appropriate journal entries to record salaries : Prepare the appropriate journal entries to record salaries and wages expense and payroll tax expense for the January 2011 pay period.

Define misappropriation of assets and give two examples : At what two levels does the auditor assess risk of material misstatement and Define misappropriation of assets and give two examples

Calculate the amount of interest capitalized for the year : Assuming the company uses the specific interest method, calculate the amount of interest capitalized for the year

User Account

All Pages