Pina Inc. charges an initial franchise fee of $90,000. Upon the signing of the agreement (which covers 3 years), a payment of $36,000 is due. Thereafter, 3 annual payments of $18,000 are required. The credit rating of the franchisee is such that it would have to pay interest at 12% to borrow money. The franchise agreement is signed on May 1, 2020, and the franchise commences operation on July 1, 2020. Click here to view factor table. Prepare the journal entries in 2020 for the franchisor under the following assumptions. (a) (b) No future services are required by the franchisor once the franchise starts operations. The franchisor has substantial services to perform, once the franchise begins operations, to maintain the value of the franchise. The total franchise fee includes training services (with a value of $2,800) for the period leading up to the franchise opening and for 2 months following opening. (c) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to O decimal places e.g. 58,971.) Date Account Titles and Explanation Debit Credit May 1, 2020 Cash 36,000 Notes Receivable 54,000 Discount on Notes Receivable 1C Unearned Franchise Revenue 79 Jul. 1, 2020 Unearned Franchise Revenue 79,213 Franchise Revenue 79 May 1, 2020 Cash 36,000 Notes Receivable 54,000 Discount on Notes Receivable 1C Contract Liability 79 Dec. 31, 2020 Unearned Franchise Revenue 17,603 Franchise Revenue 17 May 1, 2020 Cash 36,000 Notes Receivable 54,000 Discount on Notes Receivable 10 Unearned Franchise Revenue 76 Unearned Service Revenue Jul. 1, 2020 Unearned Service Revenue 1400 Unearned Franchise Revenue 76,413 Franchise Revenue 76 Service Revenue Jul. 1. 2020 Unearned Service Revenue 1400 Service Revenue