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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.
D) expenses for a birthday party
Answer:
Her recognized gain is $2,000
Explanation:
Data provided in the question:
Stock basis = $8,000
Fair market value = $6,000
Sale value = $10,000
Now,
Ralph's daughter recognized gain or loss will be
= Sale value - Stock basis
or
Ralph's daughter recognized gain or loss = $10,000 - $8,000
or
Ralph's daughter recognized gain or loss = $2,000
Here,
the positive value means that there is a gain.
Hence,
Her recognized gain is $2,000
C. Warranty and proof the company believes in their product.
