On January Sandra Clark signed an agreement, covering years, to operate as a franchisee of Oriole Inc. for an initial
franchise fee of $ The amount of $ was paid when the agreement was signed, and the balance is payable in five annual
payments of $ each, beginning January 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 Sandra Clark's credit rating
indicates that she can borrow money at for a loan of this type.
Click here to view the factor table.
a
Prepare journal entries for Oriole for 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 for
the amounts. Round present value factor calculations to decimal places, eg and the final answer to decimal places eg
List all debit entries before credit entries.
Date
Account Titles and Explanation
Debit
Credit
