On April 1, 2014, Oversized Burrito Company entered into a 10-year franchise agreement with a group of
Question:
Assume that services to be performed by Oversized Burrito between April 1, 2014, and August 15, 2015, the date that the franchise opened, are substantial and that the installment receivable is reasonably collectible. Also assume that substantial performance of the initial services has occurred as of August 15, 2014.
Required:
1. Prepare the necessary journal entries for Oversized Burrito for April 1, 2014, when the franchise agreement is signed.
2. Prepare the necessary journal entries for August 15, 2014 (ignore any interest accruals).
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Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
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