Oriole Delight, Inc. charges an initial franchise fee of $75,800 for the right to operate as a franchisee of Oriole Delight. Of this amount, $25,000 is collected immediately. The remainder is collected in four equal annual installments of $12,700 each. These installments have a present value of $41,761. As part of the total franchise fee, Oriole 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, 2025, training is completed, and the store opens on July 1, 2025. Prepare the journal entries required by Oriole Delight on April 1 and July 1, 2025. (Credit account titles are automatically indented when 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. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation 1,2025 Cash 1, 2025 Notes Receivable Unearned Franchise Revenue Unearned Service Revenue No Entry Unearned Franchise Revenue Franchise Revenue No Entry eTextbook and Media Debit 25,000 41,761 66761 Credit 66,761 2,000 66761

Oriole Delight, Inc. charges an initial franchise fee of $75,800 for the right to operate as a franchisee of Oriole Delight. Of this amount, $25,000 is collected immediately. The remainder is collected in four equal annual installments of $12,700 each. These installments have a present value of $41,761. As part of the total franchise fee, Oriole 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, 2025, training is completed, and the store opens on July 1, 2025. Prepare the journal entries required by Oriole Delight on April 1 and July 1, 2025. (Credit account titles are automatically indented when 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. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation 1,2025 Cash 1, 2025 Notes Receivable Unearned Franchise Revenue Unearned Service Revenue No Entry Unearned Franchise Revenue Franchise Revenue No Entry eTextbook and Media Debit 25,000 41,761 66761 Credit 66,761 2,000 66761

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 7C: On January 1, 2019, Mopps Corp. agrees to provide Conklin Company 3 years of cleaning and janitorial...

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