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Cullumber Diners Inc. charges an initial franchise fee of $147000 broken down as follows: Rights to trade name, market area, and proprietary know-how $69000 Training

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Cullumber Diners Inc. charges an initial franchise fee of $147000 broken down as follows: Rights to trade name, market area, and proprietary know-how $69000 Training services 12000 Equipment (cost of $16100) 66000 Total initial franchise fee $147000 Upon signing of the agreement, a payment of $69000 is due. Thereafter, 2 annual payments of $39000 are required. The credit rating of the franchisee is such that it would have to pay interest of 9% to borrow money. The franchise agreement is signed on August 1, 2021, and the franchise commences operation on November 1, 2021. Assume that the total training fees includes training services for the period leading up to the franchise opening ($9900 value) and for 3 months following opening. The journal entry on August 1.2021 would include O a credit to Unearned Service Revenue for $12000, O a debit to Sales Revenue for $66000, O a credit to Unearned Service Revenue for $2100, O a debit to Unearned Franchise Revenue for $69000

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