Journal entry for:

1. Note that Emmy's receives two types of revenue from franchisees, although both are recorded on the same line of the income statement. Initial franchise fees are paid to Emmy's in advance, and recorded as revenue over time. During 2021, Emmy's recognized $502 in revenue for franchise fees that were received by Emmy's in previous years. Emmy's was also paid $587 in initial franchise fees during 2021, but only earned $40 of these during 2021.