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Romashka-Z-Leto [24]
3 years ago
7

Wildhorse Delight, Inc. charges an initial franchise fee of $74,700 for the right to operate as a franchisee of Wildhorse Deligh

t. Of this amount, $24,900 is collected immediately. The remainder is collected in four equal annual installments $12,450 each. These installments have a present value of $41,522. As part of the total franchise fee, Wildhorse Delight also provides training (with a fair value of $2,000) to help franchisees get the store ready to open. The franchise agreement is signed on April 1, 2017, training is completed, and the store opens on July 1, 2017. Prepare the journal entry required by Wildhorse Delight in 2017.
Business
1 answer:
ryzh [129]3 years ago
3 0

Answer:

Cash 24,900 debit

Account Receivable 51,800 debit

             Franchise fee revenue 74,700 credit

             training services revenue 2,000 credit

Explanation:

The training services and the francise fee are separated revenues, so we have to use diferent account.

we are only given with the information of a initial payment, so the difference will part of account payable.

No information about the training being paid in cash, so we also assume this services were performed on account.

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Fees charge = 2%
Investment worth = $500,000
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If the demand for and supply of a good both increase, but demand increases by more than supply, price will:
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The price will rise because the manufacturer a cannot meet the demand so it will be harder to get the product
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3 years ago
In 1626, Dutchman Peter Minuit purchased Manhattan Island from a local Native American tribe. Historians estimate that the price
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Answer: Option (b) is correct.

Explanation:

Given that,

Price of island = $24 worth of goods

Goods include beads, trinkets, cloth, kettles, and axe heads.

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Future value will be calculated from the following formula:

= Present\ value\times(1+r)^{n}

= 24\times(1+0.04)^{391}

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7 0
3 years ago
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Answer:

See below

Explanation:

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Add: Beginning raw materials

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Add: direct labor cost

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Balance

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Adjusted COGS

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