BeBook Print D5 Notcom Marted at 2.00 Fiques Identifying Performance Obligations and Recording Revenue from Franchise Rights The Krispy Donuts franchise has agreements with 100 franchisees across the United States to operate bres. On January 1, 2020, Kmpy Donutsants franchisee them to operated by in Minneapolis, Minnesota using the Krispy Donuts brand name recipe, and other business concepts for a price of $100.000. On January 1, 2020, the franchisee made a down payment to the franchisor of S10,000 and paid the remaining 590,000 uptron fee on March 11, 2020, in exchange for the 100.000 Hyment, the franchisee received francherichts, which inducente national advertising campaign over the ten year period starting on the contract date to promote the brand name of you. The payment also includes the purchase of indienen from the franchisor fair value of $12.000), and upfront training and assistance in setting up the franchise cfair value 4,000). The training and stance will be performed before the one of the bakery Equipment was delivered on April 1.2020, and had a cost of $1.000K y Donuts uses the residual method to measure the standalone value of the franch How many performance obligations are included in the franchhe arrangement? When does the franchisor recognize tevenue forach performance obligation? Sale of equament Training and assistance V wwwce tong up the franchise air value of $4,000). The training and assistance will be per the bakery, Equipment was delivered on April 1, 2020, and had a cost of $8,000. Krispy Donuts uses the residual method to measure the standalone value of the frana How many performance obligations are included in the franchise arrangement? b. When does the franchisor recognize revenue for each performance obligation? Sale of equipment Training and assistance Upfront fee c. Prepare the journal entries for the Krispy Donuts franchisor through the opening of the bakery on June 1, 2020 Date Account Name Dr. Cr. Jan 1, 2020 . . Mar 31, 2020 . Apr. 1.2020 To record sale of equipment . Apr 1, 2020 To record cost of equipment June 1, 2020 2 c. Prepare the journal entries for the Krispy Donuts franchisor through the opening of the bakery on June 1, 2020, Date Account Name Dr. Cr Jan 1, 2020 Mar 31, 2020 Apr. 1.2020 To record sale of equipment Apr. 1. 2020 To record cost of equipment June 1.2020 d. Assuming the franchisor has a December 31 year-end, prepare any journal entries required on December 31, 2020, Date Account Name Dr. Cr. Dec 31, 2020 Check Previous Save Answers dv BeBook Print D5 Notcom Marted at 2.00 Fiques Identifying Performance Obligations and Recording Revenue from Franchise Rights The Krispy Donuts franchise has agreements with 100 franchisees across the United States to operate bres. On January 1, 2020, Kmpy Donutsants franchisee them to operated by in Minneapolis, Minnesota using the Krispy Donuts brand name recipe, and other business concepts for a price of $100.000. On January 1, 2020, the franchisee made a down payment to the franchisor of S10,000 and paid the remaining 590,000 uptron fee on March 11, 2020, in exchange for the 100.000 Hyment, the franchisee received francherichts, which inducente national advertising campaign over the ten year period starting on the contract date to promote the brand name of you. The payment also includes the purchase of indienen from the franchisor fair value of $12.000), and upfront training and assistance in setting up the franchise cfair value 4,000). The training and stance will be performed before the one of the bakery Equipment was delivered on April 1.2020, and had a cost of $1.000K y Donuts uses the residual method to measure the standalone value of the franch How many performance obligations are included in the franchhe arrangement? When does the franchisor recognize tevenue forach performance obligation? Sale of equament Training and assistance V wwwce tong up the franchise air value of $4,000). The training and assistance will be per the bakery, Equipment was delivered on April 1, 2020, and had a cost of $8,000. Krispy Donuts uses the residual method to measure the standalone value of the frana How many performance obligations are included in the franchise arrangement? b. When does the franchisor recognize revenue for each performance obligation? Sale of equipment Training and assistance Upfront fee c. Prepare the journal entries for the Krispy Donuts franchisor through the opening of the bakery on June 1, 2020 Date Account Name Dr. Cr. Jan 1, 2020 . . Mar 31, 2020 . Apr. 1.2020 To record sale of equipment . Apr 1, 2020 To record cost of equipment June 1, 2020 2 c. Prepare the journal entries for the Krispy Donuts franchisor through the opening of the bakery on June 1, 2020, Date Account Name Dr. Cr Jan 1, 2020 Mar 31, 2020 Apr. 1.2020 To record sale of equipment Apr. 1. 2020 To record cost of equipment June 1.2020 d. Assuming the franchisor has a December 31 year-end, prepare any journal entries required on December 31, 2020, Date Account Name Dr. Cr. Dec 31, 2020 Check Previous Save Answers dv
