On January 1, 2017, Lesley Benjamin signed an agreement, covering 5 years, to operate as a franchisee of Kingbird Inc. for an initial franchise fee of $46,000. The amount of $9,000 was paid when the agreement was signed, and the balance is payable in five annual payments of $7,400 each, beginning January 1, 2018. The agreement provides that the down payment is nonrefundable and that no future services are required of the franchisor once the franchise commences operations on April 1, 2017. Lesley Benjamins credit rating indicates that she can borrow money at 9% for a loan of this type.

Prepare journal entries for Kingbird for 2017-related revenue for this franchise arrangement, assuming that in addition to the franchise rights, Kingbird also provides 1 year of operational consulting and training services, beginning on the signing date. These services have a value of $4,000.

April 1, 2017
Unearned Franchise Revenue	33783
Unearned Service Revenue	?
Franchise Revenue		33783
Service Revenue		?

December 1, 2017
Unearned Service Revenue	?
Service Revenue		?