GoRight Inc. (GRI) is a franchisor who sells the rights to its trademark to franchisees. The franchisee pays an upfront, nonrefundable deposit of $ 1,000. GRI will then check the background and credentials of the franchisee prior to signing a licensing agreement. This takes only about four days to complete. If the franchisee passes this screening, then a contract is signed with GRI. The contract states that for consideration of $ 150,000, the franchisee will have the right to use the trademark for a period of three years. The three year period commences at the beginning of the month the contract is signed. At the end of the three- year period, the contract can be extended for another two years on pay-ment of an agreed upon amount at that time. The franchisee may pay the $ 150,000 in three installments starting on the date that the contract is signed. (The upfront fee is part of the $ 150,000 total.) In other words, on signing of the contract, $ 50,000 is due, and then another $ 50,000 is paid in the next 30 days and the final $ 50,000 payment is due in 60 days (from the date of signing the contract). Failure to pay the amounts on time will forfeit the franchisee€™s right to use the trademark and a refund of only 95% will be repaid. The 5% is kept to cover administrative costs incurred. In 20X4, GRI signed 20 contracts with various franchisees as detailed below. GRI has a December year- end.

Required:
1. Give the required entries for 20X4 summarized for the year.
2. Give the related balances that would be reported on the 20X4 SCIs andSFP.

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Number of Licence Amount Paid to Date yments Not Agreements Signed Yet Received April 20X4 July 20X4 October 20X4 November 20X4 Total 450,000 1,200,000 700,000 400,000 2,750,000 0 8 50,000 (note 1) 4 20 200,000 250,000