On January 1, 2025, Nancy White signed an agreement, covering 5 years, to operate as a franchisep of Blossom Inc. for an initial franchise fee of $41,000. The amount of $12,000 was paid when the agreement was signed, and the balance is payable in five annual payments of $5,800 each, beginning January 1, 2026. The agreement provides that the down payment is nonrefundable and that no future services are required of the franchisor once the franchise commences operations on April 1, 2025. Nancy White's credit rating indicates that she can borrow money at 9% for a loan of this type
Q: Best Jam Inc. manufactures jam products. It makes a mixed fruit and berry jam by blending…
A: Material yield variance= (Standard qty for actual output - Revised actual quantity for actual…
Q: On January 1, 2015, Lyle's Limeade issues 5%, 15-year bonds with a face amount of $85,000 for…
A: One of the most commonly used sources of funding by corporate entities is issuance of Bonds.Bond is…
Q: Vulcan Flyovers offers scenic overflights of Mount Saint Helens, the volcano in Washington State…
A: Revenue and spending variances are calculated by subtracting the actual results of cost with…
Q: Please describe how tax-exempt interest and foreign-earned income exclusion are used in the U.S.?…
A: It is the income of a taxpayer on which the revenue authorities will impose tax. The taxable is the…
Q: In the process of reconciling its bank statement for January, Maxi's Clothing's accountant compiles…
A: Bank reconciliation is the process of comparing a company's financial records with its bank…
Q: Mayra is single and a mom of a 2 year old child. Erin has net taxable income and salary of $45,000…
A: The United States government offers the Child Care Credit as a tax credit to assist parents or…
Q: Bovine Company, a wholesale distributor of umbrellas, has been experiencing losses for some time, as…
A: Income statement is a financial statement that shows profitability, total revenue and total expenses…
Q: Entries for receipt and dishonor of notes receivable Journalize the following transactions in the…
A: The journal entries are prepared to record the transactions on regular basis. The adjustment entries…
Q: Edwards and Bell market a single line of home computers, dubbed the XL-98. The master budget for the…
A: A difference between an amount forecasted and an actual amount is known as an accounting variance.…
Q: The unadjusted trial balance of the Manufacturing Equitable at December 31, 2024, the end of its…
A: Journal entries known as "adjusting entries" are made in the general ledger of a business at the…
Q: At December 31, 2025
A: Deferred tax asset: When the Tax Expense account is more than the Income Tax Payable account, this…
Q: On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows:…
A: Shareholder equity helps investors and other companies in analyzing the growth or financial position…
Q: Compute Sheridan' break-even point in units. Break-even point in units eTextbook and Media Prepare a…
A: Cost volume profit analysis is the technique used by management for decision making. The methods…
Q: Required information [The following information applies to the questions displayed below.] Pacific…
A: Conversion cost is used in the manufacturing sector to describe how effective a given product's…
Q: On January 1, 2015 ,Pub Corporation made a significant acquisition, purchasing 75 percent of Sub…
A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: (3) Units-of-production method: Year Units-of-Production 2024 2025 2026 2027 2028 eTextbook and…
A: DEPRECIATION EXPENSEDepreciation means gradual decrease in value of assets due to normal wear and…
Q: What does the company report for the following accounts for the most current fiscal year: Enter…
A: Ratio analysis refers to the study of the line items present in the financial statements of the firm…
Q: The accumulated earnings tax, which is imposed on corporations for the accumulation of earnings in…
A: A corporation must show the IRS that it has a genuine business reason for keeping its revenues.…
Q: ost-Volume-Profit Relations:
A: The contribution margin is calculated as the difference between sales and variable costs.The…
Q: The Alpine House, Incorporated, is a large retailer of snow skis. The company assembled the…
A: The income statement is an essential part of the financial statements of the company. It Indicates…
Q: Outstanding checks, $1,040 • Deposits in transit, $690. • Bank service charges, $135 • The bank had…
A: The bank reconciliation statement is prepared to equate the balances of the cash book and pass book…
Q: Required information [The following information applies to the questions displayed below.] At the…
A: DEPRECIATION EXPENSEDepreciation means gradual decrease in value of assets due to normal wear and…
Q: Sales Cost of merchandise sold Gross profit Selling expenses Administrative expenses Total operating…
A: Horizontal analysis is a financial analysis approach that is used to examine and compare a company's…
Q: Note: Carryall decimals in calculations; round the final answer to the nearest dollar. Performance…
A: Journal is the primary book where the transactions are originally recorded. Further, a journal entry…
Q: Crunchem Cereal Company incurred the following actual Direct material used Direct labor $275,000…
A: COGM is an important metric for businesses since it helps to assess the cost of items produced and…
Q: Given the information listed below for the fiscal year 2022, determine beginning inventory. A…
A: INCOME STATEMENTIncome Statement is one of the Important Financial Statement of the Company. Income…
Q: J.Lo's Clothiers has forecast credit sales for the fourth quarter of the year: Fourth Quarter…
A: Cash collection budget :— This budget is prepared to estimate the collection of sales from customers…
Q: Inventory data for Culver Corporation are presented as follows. Date Explanation Units Unit Cost…
A: Under the FIFO method, the oldest products in inventory are sold first.Under the LIFO method, the…
Q: The following defined pension data of Sunland Corp. apply to the year 2025. Projected benefit…
A: The defined benefit pension plans include the promise to pay fixed retirement benefits computed by a…
Q: Required Information [The following information applies to the questions displayed below] Jorgansen…
A: Absorption costing method is a method of costing in which product cost is calculated by adding…
Q: Required information [The following information applies to the questions displayed below.] Corrigan…
A: Break even point :— It is the point of production where total cost is equal to total revenue. At…
Q: Number of Days Unpaid Not yet due 1 to 30 days past due 31 to 60 days past due Over 60 days past due…
A: The allowance for doubtful accounts is created to record estimated bad debt expense for the period.…
Q: The following relate to Minnie’s financial statements for the year ended 30 April 20X6. Some…
A: The trade receivables control account is prepared to record credit sales and monitor payments…
Q: Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs…
A: Inventory valuation is based on the flow used by the entity for issuing inventory. It can be the…
Q: ndicate whether each of the following costs is a product cost or a period (selling and…
A: Product Costs Are Those Costs That Are Directly Related To The Production Of The Particular Product.…
Q: Required: Prepare the appropriate journal entries to record each transaction.
A: Issuing shares with non- cash consideration involves offering company shares in exchange for assets,…
Q: During 2020, Splish Furniture Company purchases a carload of wicker chairs. The manufacturer sells…
A: For calculation of gross profit realized and inventory, firstly cost per unit is required to be…
Q: Presented below are selected accounts of Novak Company at December 31, 2017. Inventory (finished…
A: It is assets of the company that are expected to be sold or used in the business operation within…
Q: Required Compute variances for the following items and indicate whether each variance is favorable…
A: Variance :— It is the difference between budget amount and actual amount. For Revenue:— When actual…
Q: Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a…
A: Unit product cost is the amount of cost per unit incurred on the making of the goods. It includes…
Q: Cost and Depreciation On January 1, Quick Stop, a convenience store, purchased a new soft-drink…
A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Longboard Company has a process costing system. All materials are introduced at the beginning of the…
A: FIFO METHOD :— Under this method, equivalent units are calculated by adding equivalent units in…
Q: The following represents the inventory of Jackson Company for the month of January: Jan. 1 On hand,…
A: The inventory can be valued using various methods as FIFO, LIFO and average method. Using LIFO, the…
Q: When Turner Company adopted its defined benefit pension plan on January 1, 2019, it awarded…
A: A pension worksheet helps to know about the benefits or losses from the particular scheme. It is…
Q: Walton Corporation is a manufacturing company that makes small electric motors it sells for $47 per…
A: Breakeven is the point at which an entity is in a situation of no profit and no loss. It is the…
Q: The Merchandise Inventory account of a company shows a balance of $70,000 but a physical count of…
A: Inventory Shrinkage: It refers to the inventory loss due to a difference in the total value of…
Q: Required information [The following information applies to the questions displayed below.] The…
A: Stockholder's Equity -Stockholder's Equity includes the amount contributed by shareholders in the…
Q: Citrus Girl Company (CGC) purchases quality citrus produce from local growers and sells the produce…
A: forecasting is a process that offers insights into future financial performance based on historical…
Q: The following information is available for Trinkle Company for the month of June: 1. The unadjusted…
A: It is a statement drawn up by the business to verify the cash book balance with the bank statement…
Q: Based on its physical count of inventory in its warehouse at year-end. December 31 of the current…
A: Inventory management assists firms in lowering carrying costs, reducing the risk of overstock or…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- On January 1, 2019, Mopps Corp. agrees to provide Conklin Company 3 years of cleaning and janitorial services. The contract sets the price at 12,000 per year, which is the normal standalone price that Mopps charges. On December 31, 2020, Mopps and Conklin agree to modify the contract. Mopps reduces the fee for the third year to 10,000, and Conklin agrees to a 4-year extension that will extend services through December 31, 2024, at a price of 15,000 per year. At the time that the contract is modified, Mopps is charging other customers 13,500 for the cleaning and janitorial service. Required: Should Mopps and Conklin treat the modification as a separate contract? If so how should Mopps account for the contract modification on December 31, 2020? Support your opinion by discussing the application to this case of the factors that need to be considered for determining the accounting for contract modifications.On October 1, 2019, Grahams WeedFeed Inc. signs a contract to maintain the grounds for BigData Corp. The contract ends on March 31, 2020, and has a monthly payment of 3,200. The contract does not include any stipulations for additional periods. On June 1, Grahams WeedFeed and BigData sign a new 12-month contract that is retroactive to April 1, 2020. The monthly fee for the new contract is 4,000 per month and is also retroactive to April 1, 2020. During April and May of 2020, while the new contract was being negotiated, Grahams Weed Feed continued to maintain the grounds, and BigData continued to pay 3,200 per month. BigData was satisfied with Grahams WeedFeeds performance, and the only issue during negotiations was the monthly fee. Required: Determine if a valid contract exists between Grahams WeedFeed and BigData during April and May 2020.On January 1, 2025, Nancy White signed an agreement, covering 5 years, to operate as a franchisee of Blossom Inc. for an initial franchise fee of $41,000. The amount of $12,000 was paid when the agreement was signed, and the balance is payable in five annual payments of $5,800 each, beginning January 1, 2026. The agreement provides that the down payment is nonrefundable and that no future services are required of the franchisor once the franchise commences operations on April 1, 2025. Nancy White's credit rating indicates that she can borrow money at 9% for a loan of this type. Click here to view the factor table. (a) Your answer is partially correct. -- 4 Prepare journal entries for Blossom for 2025-related revenue for this franchise arrangement. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- On January 1, 2025, Mary Johnson signed an agreement, covering 5 years, to operate as a franchisee of Blossom Inc. for an initial franchise fee of $50,000. The amount of $9,000 was paid when the agreement was signed, and the balance is payable in five annual payments of $8,200 each, beginning January 1, 2026. The agreement provides that the down payment is nonrefundable and that no future services are required of the franchisor once the franchise commences operations on April 1, 2025. Mary Johnson's credit rating indicates that she can borrow money at 8% for a loan of this type. Click here to view the factor table. (a) Your answer is correct. Prepare journal entries for Blossom for 2025-related revenue for this franchise arrangement. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Round present value factor calculations to 5 decimal…On January 1, 2025, Maria Wilson signed an agreement, covering 5 years, to operate as a franchisee of Sheridan Inc. for an initial franchise fee of $40,000. The amount of $13,000 was paid when the agreement was signed, and the balance is payable in five annual payments of $5,400 each, beginning January 1, 2026. The agreement provides that the down payment is nonrefundable and that no future services are required of the franchisor once the franchise commences operations on April 1, 2025. Maria Wilson's credit rating indicates that she can borrow money at 8% for a loan of this type. Click here to view the factor table. (a) Prepare journal entries for Sheridan for 2025-related revenue for this franchise arrangement. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and…On January 1, 2025, Debra Smith signed an agreement, covering 5 years, to operate as a franchisee of Cullumber Inc. for an initial franchise fee of $36,000. The amount of $9,000 was paid when the agreement was signed, and the balance is payable in five annual payments of $5,400 each, beginning January 1, 2026. The agreement provides that the down payment is nonrefundable and that no future services are required of the franchisor once the franchise commences operations on April 1, 2025. Debra Smith's credit rating indicates that she can borrow money at 9% for a loan of this type. Click here to view the factor table. (a) Prepare journal entries for Cullumber for 2025-related revenue for this franchise arrangement. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the…
- On January 1, 2020, Lesley Benjamin signed an agreement, covering 5 years, to operate as a franchisee of Campbell Inc. for an initial franchise fee of $50,000. The amount of $10,000 was paid when the agreement was signed, and the balance is payable in five annual payments of $8,000 each, beginning January 1, 2021. The agreement provides that the down payment is nonrefundable and that no future services are required of the franchisor once the franchise commences operations on April 1, 2020. Lesley Benjamin's credit rating indicates that she can borrow money at 11% for a loan of this type. Instructions a. Prepare journal entries for Campbell for 2020-related revenue for this franchise arrangement. b. Prepare journal entries for Campbell for 2020-related revenue for this franchise arrangement, assuming that in addition to the franchise rights, Campbell also provides 1 year of operational consulting and training services, beginning on the signing date. These services have a value of…(Franchise Fee, Initial Down Payment) On January 1, 2017, Lesley Benjamin signed an agreement, covering 5 years, to operate as a franchisee of Campbell Inc. for an initial franchise fee of $50,000. The amount of $10,000 was paid when the agreement was signed, and the balance is payable in five annual payments of $8,000 each, beginning January 1, 2018. Theagreement provides that the down payment is nonrefundable and that no future services are required of the franchisor once the franchise commences operations on April 1, 2017. Lesley Benjamin’s credit rating indicates that she can borrow money at 11% for a loan of this type.Instructions(a) Prepare journal entries for Campbell for 2017-related revenue for this franchise arrangement.(b) Prepare journal entries for Campbell for 2017-related revenue for this franchise arrangement, assuming that in addition to the franchise rights, Campbell also provides 1 year of operational consulting and training services, beginning on the signing date.…On January 1, 2019, Tulip signed an agreement to operate as a franchise of Flower Service Inc. for an initial franchise fee of P850,000. Of this amount, P250,000 was paid when the agreement was signed and the balance was payable in four annual payments of P150,000 each, beginning January 1, 2020. The agreement provides that the down payment is not refundable and no future services are required of the franchisor. The present value of January 1, 2019 of the four annual payments discounted at 14% (the implicit rate for a loan of this type) is P437,000. The agreement also provides that 5% of the revenue from the franchise must be paid to the franchisor annually. Tulip's revenue from the franchise for 2019 was P900,000. Tulip estimates the useful life of the franchise to be ten years. Tulip incurred P780,000 of experimental and development costs in its laboratory to develop a patent which was granted on January 2, 2019. Legal fees and other costs associated with the registration of the…
- Diamond's Pizza Inc. enters into a franchise agreement on December 31, 2019, giving Domino Corp. the right to operate as a franchisee of Diamond's Pizza for 5 years. Diamond charges Domino an initial franchisee fee of P475,000 for the right to operate as a franchisee. Of this amount, P190,000 is payable when Domino Corp. signs the agreement, and the balance is payable in five annual payments of P57,000 each on December 31. Consider the following for allocation of the transaction price at December 2019. Rights to the trade name, market area, technical and propriety know-how Services – training, etc Machinery and equipment etc. (costing, P95, 000) Total Transaction price P190,000.00 94,591.50 133,000.00 P417,591.50 The credit rating of Domino indicates that money can be borrowed at 8%. The present value of an ordinary annuity of five annual receipts of P57,000 each discounted at 8% is P227, 591.50. The discount of P57,408.50 represents the interest revenue to be accrued by Diamond's…Diamond’s Pizza Inc. enters into a franchise agreement on December 31, 2019, giving Domino Corp. the right to operate as a franchisee of Diamond’s Pizza for 5 years. Diamond charges Domino an initial franchisee fee of P475,000 for the right to operate as a franchisee. Of this amount, P190,000 is payable when Domino Corp. signs the agreement, and the balance is payable in five annual payments of P57,000 each on December 31.Consider the following for allocation of the transaction price at December 2019.Rights to the trade name, market area, technical and propriety know-how P190,000.00Services – training, etc 94,591.50Machinery and equipment etc. (costing, P95, 000) 133,000.00Total Transaction price P417,591.50The credit rating of Domino indicates that money can be borrowed at 8%. The present value of an ordinary annuity of five annual receipts of P57,000 each discounted at 8% is P227, 591.50. The discount of P57,408.50 represents the interest revenue to be accrued by Diamond’s Pizza Inc.…On December 31, 2019, Pepe Company signed an agreement to operate as franchise of Annie’s for afranchise fee of P80,000. Of this amount, P30,000 was paid upon signing of the agreement and thebalance is payable in five annual payments of P10,000 each beginning December 31, 2019. Thepresent value of the five payments, at an appropriate rate of interest, is P36,000 on December 31,2019. The agreement provides that the down payment is not refundable, and no future services arerequired of the franchisor. The collection of the note receivable is reasonably certain. Annie’sCompany should report unearned revenue from franchise fee in its December 31, 2019, balance sheetat:
