Gershwin Corporation obtained a franchise from Sonic Hedgehog Inc. for a cash payment of $120,000 on April 1, 2014. The franchise grants Gershwin the right to sell certain products and services for a period of 8 years. Prepare Gershwins April 1 journal entry and December 31 adjusting entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date

Account Titles and Explanation Debit Credit

Apr. 1 ___________________ ___________ ____________

_________________________ _____________ _____________

Dec. 31 ___________________ _____________ ______________

___________________________ _____________ _______________