Please explain step by step.

Martinez Corporation obtained a franchise from Sonic Hedgehog Inc. for a cash payment of $86, 400 on April 1, 2017. The franchise grants Martinez the right to sell certain products and services for a period of 8 years. Prepare Martinez's April 1 journal entry and December 31 adjusting entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)