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On January 1, 2012, a franchisor received P150,000 cash and a P850,000 10% note as payment for a franchise contract. The franchisor incurred P700,000 to satisfy all costs related to the franchise contract. How much is the Franchise Revenue?

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  1. On January 1, 2012, a franchisor received P150,000 cash and a P850,000 10% note as payment for a franchise contract. The franchisor incurred P700,000 to satisfy all costs related to the franchise contract. • How much is the Franchise Revenue? • How much is the gross profit realized in this transaction?

  2. On January 1, 2012, a franchisor received P150,000 cash and a P850,000 noninterest-bearing note as payment for a franchise contract. The note is payable in 2 equal installment payments starting June 30, 2012. The franchisor incurred P700,000 to satisfy all costs related to the franchise contract. Imputed interest is 10% • How much is the Franchise Revenue? • How much is the gross profit realized in this transaction?

  3. On January 1, 2012, a franchisor received P150,000 cash and a P850,000 noninterest-bearing note as payment for a franchise contract. The note is payable in 2 equal installment payments starting June 30, 2012. The franchisor incurred P700,000 to satisfy all costs related to the franchise contract. Imputed interest is 10%. The collection of the note is not reasonably assured. • How much is the Franchise Revenue? • How much is the gross profit realized in this transaction?

  4. On January 1, 2012, a franchisor received P150,000 cash and a P850,000 noninterest-bearing note as payment for a franchise contract. The note is payable in 2 equal installment payments starting June 30, 2012. The franchisor incurred P700,000 to satisfy all costs related to the franchise contract. Imputed interest is 10%. The collection of the note is uncertain. • How much is the Franchise Revenue? • How much is the gross profit realized in this transaction?

  5. On January 1, 2012, a franchisor received P150,000 refundable cash payment and a P850,000 noninterest-bearing note as payment for a franchise contract. The note is payable in 2 equal installment payments starting June 30, 2012. The franchisor incurred P100,000 to satisfy services which is a fair measure of the down payment paid. Imputed interest is 10%. • How much is the Franchise Revenue? • How much is the gross profit realized in this transaction?

  6. On January 1, 2012, a franchisor received P150,000 non-refundable cash payment and a P850,000 noninterest-bearing note as payment for a franchise contract. The note is payable in 2 equal installment payments starting June 30, 2012. The franchisor incurred P100,000 to satisfy services which is a fair measure of the down payment paid. Imputed interest is 10%. • How much is the Franchise Revenue? • How much is the gross profit realized in this transaction?

  7. On January 1, 2012, a franchisor received P150,000 refundable cashdown payment and a P850,000 noninterest-bearing note as payment for a franchise contract. The note is payable in 2 equal installment payments starting June 30, 2012. The franchisor incurred P100,000 to satisfy services which is a fair measure of the down payment paid. Imputed interest is 10%. The collection of the note is not reasonably assured. • How much is the Franchise Revenue? • How much is the gross profit realized in this transaction?

  8. On January 1, 2012, a franchisor received P150,000 non-refundable cash and a P850,000 noninterest-bearing note as payment for a franchise contract. The note is payable in 2 equal installment payments starting June 30, 2012. The franchisor incurred P100,000 to satisfy services which is a fair measure of the down payment paid. Imputed interest is 10%. The collection of the note is uncertain. • How much is the Franchise Revenue? • How much is the gross profit realized in this transaction?

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