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question frozen delight inc charges an initial franchise fee of 79 300for the right 4279742

Question

Frozen Delight, Inc. charges an initial franchise fee of $79,300for the right to operate as a franchisee of Frozen Delight. Of thisamount, $25,600 is collected immediately. The remainder iscollected in four equal annual installments of $13,425 each. Theseinstallments have a present value of $41,960. As part of the totalfranchise fee, Frozen Delight also provides training (with a fairvalue of $2,200) to help franchisees get the store ready to open.The franchise agreement is signed on April 1, 2014, training iscompleted, and the store opens on July 1, 2014. Prepare the journalentries required by Frozen Delight in 2014. (If no entry isrequired, select “No Entry” for the account titles and enter 0 forthe amounts. Credit account titles are automatically indented whenthe amount is entered. Do not indent manually. Record unearnedservice revenue for training and franchise separately. Do notcombine these amounts.)

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