Blue Corporation obtained a franchise from Larkspur Inc. for a cash payment of $$122,400$ on April $1,2025.$ The franchise grants Blue the right to sell certain products and services for a period of $6$ years.

Prepare Blue's April $1$ journal entry and December $31$ adjusting entry. $($Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List all debit entries before credit entries.$)$

Date

Account Titles and Explanation

Debit

Credit