Brief Exercise 12-04

Ayayai Corporation obtained a franchise from Kingbird Inc. for a cash payment of $153,600on April 1, 2020. The franchise grants Ayayai the right to sell certain products and services for a period of8years.

Prepare Ayayai'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.)

Date

Account Titles and Explanation

Debit

Credit

choose a transaction date

Apr. 1

Dec. 31

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

choose a transaction date

Apr. 1

Dec. 31

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount