Frozen Delight, Inc. charges an initial franchise fee of $79,300 for the right to operate as a franchisee of Frozen Delight. Of this amount, $25,600 is collected immediately. The remainder is collected in four equal annual installments of $13,425 each. These installments have a present value of $41,960. As part of the total franchise fee, Frozen Delight also provides training (with a fair value of $2,200) to help franchisees get the store ready to open. The franchise agreement is signed on April 1, 2014, training is completed, and the store opens on July 1, 2014. Prepare the journal entries required by Frozen Delight in 2014

April 1, 2014

CASH	25600
?	?
?		?
?		2200
Unearned Franchise Revenue		?

July 1, 2014

Unearned Franchise Revenue	?
Unearned Service Revenue	2200
Franchise Revenue		?
Service Revenue		2200