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On January $1,2025,$ Sharon Walker signed an agreement, covering $5$ years, to operate as a franchisee of Carla Vista Inc. for an initial

franchise fee of $$62,000.$ The amount of $$9,000$ was paid when the agreement was signed, and the balance is payable in five annual

payments of $$10,600$ each, beginning January $1,2026.$ The agreement provides that the down payment is nonrefundable and that no

future services are required of the franchisor once the franchise commences operations on April $1,2025.$ Sharon Walker's credit

rating indicates that she can borrow money at $9\%$ for a loan of this type.

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$($a$)$

Prepare journal entries for Carla Vista for $2025-$related revenue for this franchise arrangement. $($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$.1\mathrm{.}25124$ and the final answer to $0$ decimal

places e$.$g$.58,971.$ List all debit entries before credit entries.$)$

Date

Account Titles and Explanation

Debit

Cred

Cash

Notes Recelvable

Dlscount on Notes Recelvable

Unearned Franchlse Revenue

Unearned Franchlse Revenue

Franchlse Revenue

Dlscount on Notes Recelvable

$3400$

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