Nena’s Lechon, Inc. franchise, entered into franchise agreement with Aling Nene, franchisee, on March 31, 2023. The total franchise fee is P500,000, of which P100,000 is payable upon signing and the balance in four equal annual installments. The down-payment is refundable in the event the franchiser fails to render services and none thus far had been rendered. When Nena’s prepares its financial statements on March 31, 2023, the franchise fee revenue to be reported is:

Nena’s Lechon, Inc. franchise, entered into franchise agreement with Aling Nene, franchisee, on March 31, 2023. The total franchise fee is P500,000, of which P100,000 is payable upon signing and the balance in four equal annual installments. The down-payment is refundable in the event the franchiser fails to render services and none thus far had been rendered. When Nena’s prepares its financial statements on March 31, 2023, the franchise fee revenue to be reported is:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Mina's Kitchen, Inc. franchise, entered into franchise agreement with Aling Mina, franchisee, onMarch 31, 2019. The total franchise fee is P500,000, of which P100,000 is payable upon signing andthe balance in four equal annual installments. The down-payment is refundable in the event thefranchiser fails to render services and none thus far had been rendered. When Mina's prepares itsfinancial statements on March 31, 2019, the franchise fee revenue to be reported is: