User Account

All Pages

In good form prepare a schedule showing all expenses

Assignment Help Accounting Basics
Reference no: EM13485733

A Company entered into a franchise agreement to operate a franchised location beginning on January 1, 2014. The terms of the agreement were that the initial franchise fee was $120,000 to be paid in 5 equal annual payments of $24,000 beginning on January 1, 2014. In addition, the Company must pay the franchisor 7% of the Company's revenue from the operation of the franchise each year. The Company estimates the useful life of this franchise to be 8 years. The appropriate discount rate for the Company is 10%. The present value of the annual payments to be paid beginning on January 1,2014 is $100,077. During 2014 the Company realized revenue in the total amount of $1,080,000 from the operation of the franchise.

On January 1, 2013 the Company was granted a patent. The Company incurred a total of $59,724 in experimental and development costs. In addition, the company spent $8,960 in legal fees and other costs to register the patent. The patent is expected to have a useful life of 10 years.

The Company purchased a copyright on June 1, 2011 for a total cost of $33,000 and with an estimated useful life of 15 years. On June 1, 2014 the company successfully defended a copyright infringement law suit at a cost of $8,300.

Instructions:

A. Prepare the intangible assets section of the Company's balance sheet as of December 31, 2014. Show supporting calculations in good form.

B. In good form, prepare a schedule showing all expenses resulting from the transactions that would appear on the Company's income statement for the year ending December 31, 2014. Show supporting calculations in good form.

Reference no: EM13485733

Questions Cloud

The same lawyer representing a different client in a civil : the same lawyer representing a different client in a civil manner was victorious and will be receiving a contingent fee
The user of leverage might be thought of as taking : the user of leverage might be thought of as taking advantage of the provider. between stockholders and bondholders
A company pays its insurance on an annual basis the : a company pays its insurance on an annual basis. the insurance premiums are 18000 per year. the insurance coverage
The central issue underlying the study of leverage is : the central issue underlying the study of leverage is whether or not it influences stock price and whether theres an
In good form prepare a schedule showing all expenses : a company entered into a franchise agreement to operate a franchised location beginning on january 1 2014. the terms of
Both business risk and financial risk would exist with or : both business risk and financial risk would exist with or without either type of leverage. leverage just makes them
Prepare the journal entries to record all the 2008 : supreme sales company which sells only on account had a 100000 balance in its accounts receivable and a 4000 balance in
Given the following information how much was transferred to : 1. managerial accountinga. focuses primarily on reporting to regulatory agenciesb .is governed by generally accepted
You have just taken out an installment loan for 100000 : you have just taken out an installment loan for 100000. assume that the loan will be repaid in 12 equal monthly

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determining nonrecourse debt for basis

The property was also encumbered by a $50,000 nonrecourse debt, which was transferred to te partnership on that date. Another partner, Sylvia, shares 1/3 of the partnership income, gain, loss, deduction, and credit. Under IRS regulations, Sylvia's..

  Prepare an income statement for the adjusted trial balance

Prepare an income statement for the adjusted trial balance of Hanson Storage. Prepare a balance sheet from the adjusted trial balance of Hanson Storage

  Recognize and define the accounting equation

Recognize and define the accounting equation, classify accounts as Assets, Liability, or Equity, and evaluate, record and post common business transactions.

  Ralization should be allocated to alpha

Alpha and Beta are partners who share income in the ratio of 1:2 and have capital balances of $40,000 and $70,000 at the time they decide to terminate the partnership. After all noncash assets are sold and all liabilities are paid, there is a cash..

  Receipt of the semiannual interest payment

Griggs Company holds $50,000 of 8% bonds as a held-to-maturity security. Which of the following is the correct journal entry to record the receipt of the semiannual interest payment.

  Change in the daily contribution margin

The contribution margin of the finished products is $6 each. Inventory carrying costs are $0.40 per unit per day. What is the change in the daily contribution margin if the change is made?

  Computing the adjusted basis of property

Identify and describe the general formula for calculating the adjusted basis of property.

  Determine present value-compounded semi annually

Find the present value of rs.2000 due in 6 yrs if money is worth compounded semi-annually ascertain the present value of an amount of rs.8000deposited now in a commercial bank for a period of 6 yrs at 12 % rate of interest.

  Determine the course of action regarding the audit

It serves to highlight the importance of audit opinions and reports. This project gives you an opportunity to conduct certain audit procedures and determine the course of action regarding the audit.

  For each of parts 1 to 5 a prepare the necessary journal

the following selected items and amounts were taken from the balance sheet of quale company as of december 31 2012cash

  Maturity value in two years-before tax interest

Freddy purchased a certificate of deposit for $20,000 on January 1,2010. The certificate's maturity value in two years (December 31,2011) is $22,050. yeilding 5% before-tax interest.

  Permanent current assets basics

Permanent current assets are not a factor in a manager's decision making process when all current assets will be:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd