The QD Company sells franchises. The company charges $50,000 for the initial franchise fee. A down payment of $10,000 is required as part of the franchise agreement. A note payable for the remaining balance is issued at a 10% interest rate payable in four equal annual installments.
Required:
For each of the following independent situations prepare the necessary journal entries for QD to record the initial franchise fee.

Question

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The Answer of The QD Company sells franchises. The company charges $50,000 for the initial franchise fee. A down payment of $10,000 is required as part of the franchise agreement. A note payable for the remaining balance is issued at a 10% interest rate payable in four equal annual installments.
Required:
For each of the following independent situations prepare the necessary journal entries for QD to record the initial franchise fee.

The QD Company Sells Franchises