On November 30, 20x1, Momo's Chicken and Waffle granted a 5-year franchise right to Sana for an initial franchise fee of ₱400,000. The non-refundable initial franchise fee was collected in full upon signing of the contract. As of December 31, 20x1, Momo's Chicken and Waffle has no remaining obligation or intent to refund any of the cash received, all of the services pertaining to pre-opening activities to set-up the contract have been performed and there are no other material conditions or obligations required of Momo's Chicken and Waffle under the franchise agreement. If the promise to grant the franchise right is distinct and that the grant of franchise provides the customer the right to use the entity’s intellectual property, how much revenue shall Momo's Chicken and Waffle recognize in December 31, 20x1? A. P80,000 B. P0 C. P6,666.67 D. P40,000 E. P13,333.33 F. None of the above
On November 30, 20x1, Momo's Chicken and Waffle granted a 5-year franchise right to Sana for an initial franchise fee of ₱400,000. The non-refundable initial franchise fee was collected in full upon signing of the contract. As of December 31, 20x1, Momo's Chicken and Waffle has no remaining obligation or intent to refund any of the cash received, all of the services pertaining to pre-opening activities to set-up the contract have been performed and there are no other material conditions or obligations required of Momo's Chicken and Waffle under the franchise agreement. If the promise to grant the franchise right is distinct and that the grant of franchise provides the customer the right to use the entity’s intellectual property, how much revenue shall Momo's Chicken and Waffle recognize in December 31, 20x1? A. P80,000 B. P0 C. P6,666.67 D. P40,000 E. P13,333.33 F. None of the above
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
On November 30, 20x1, Momo's Chicken and Waffle granted a 5-year franchise right to Sana for an initial franchise fee of ₱400,000. The non-refundable initial franchise fee was collected in full upon signing of the contract. As of December 31, 20x1, Momo's Chicken and Waffle has no remaining obligation or intent to refund any of the cash received, all of the services pertaining to pre-opening activities to set-up the contract have been performed and there are no other material conditions or obligations required of Momo's Chicken and Waffle under the franchise agreement.
If the promise to grant the franchise right is distinct and that the grant of franchise provides the customer the right to use the entity’s intellectual property, how much revenue shall Momo's Chicken and Waffle recognize in December 31, 20x1?
A. P80,000
B. P0
C. P6,666.67
D. P40,000
E. P13,333.33
F. None of the above
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education