Pacific Crossburgers Inc. charges an initial franchise fee of $70,000. Upon the signing of the agreement (which
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Instructions
Prepare the journal entries in 2019 for the franchisor under the following assumptions. (Round to the nearest dollar.)
a. No future services are required by the franchisor once the franchise starts operations.
b. The franchisor has substantial services to perform, once the franchise begins operations, to maintain the value of the franchise.
c. The total franchise fee includes training services (with a value of $2,400) for the period leading up to the franchise opening and for 2 months following opening.
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Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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