1. ABC Island, Inc. charges an initial franchise fee of ₱75,000 for the right to operate as a franchisee of ABC Island. Of this amount, ₱25,000 is collected immediately. The remainder is collected in four equal annual installments of ₱12,500 each. These installments have a present value of ₱41,402. As part of the total franchise fee, Frozen 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, 2020, training is completed, and the store opens on July 1, 2020. The amount of total revenue from training and franchise on July 1, 2020 is? 64,402 66,402 75,000 0

1. ABC Island, Inc. charges an initial franchise fee of ₱75,000 for the right to operate as a franchisee of ABC Island. Of this amount, ₱25,000 is collected immediately. The remainder is collected in four equal annual installments of ₱12,500 each. These installments have a present value of ₱41,402. As part of the total franchise fee, Frozen 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, 2020, training is completed, and the store opens on July 1, 2020. The amount of total revenue from training and franchise on July 1, 2020 is? 64,402 66,402 75,000 0

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 52P

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Frozen Delight, Inc. charges an initial franchise fee of $75,000 for the right to operate as a franchisee of Frozen Delight. Of this amount, $25,000 is collected immediately. The remainder is collected in four equal annual installments of $12,500 each. These installments have a present value of $41,402. As part of the total franchise fee, Frozen 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, 2020, training is completed, and the store opens on July 1, 2020. Prepare the journal entries required by Frozen Delight on April 1 and July 1, 2020.
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