Prepare journal entries for the above.

4. In 2018, the Astro Company entered into the following transactions A. On January 1, 2018, purchased a franchise with an unlimited life, for an initial franchise fee of $250.000. Or this amount, $70,000 was paid on Jan. 1, and the balance is payable in 3 annual payments of $60,000 each, beginning Jan. 1. 2019. The effective interest rate is 8%. Present value information for 8%, three periods are as follows: Present value of 0.79383; Present value of an ordinary annuity of 1 2.57710