Dominos Pizza, franchisor, entered into a franchise agreement with Kabayan Co., franchisee, on July 1, 2021. The total franchise fees agreed upon is P1,100,000, of which P100,000 is payable upon signing and the balance payable in four equal annual installments. It was agreed that the down
Dominos Pizza, franchisor, entered into a franchise agreement with Kabayan Co., franchisee, on July 1, 2021. The total franchise fees agreed upon is P1,100,000, of which P100,000 is payable upon signing and the balance payable in four equal annual installments. It was agreed that the down
Chapter1: Financial Statements And Business Decisions
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Dominos Pizza, franchisor, entered into a franchise agreement with Kabayan Co., franchisee, on July 1, 2021. The total franchise fees agreed upon is P1,100,000, of which P100,000 is payable upon signing and the balance payable in four equal annual installments. It was agreed that the down payment is not refundable, notwithstanding lack of satisfaction of any performance obligation by the franchisor. When Dominos prepares its financial statements on July 31, 2020, the unearned franchise fees to be reported is how much?
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