Answer:
Step-by-step explanation:
The journal entry is shown below:
On April 1
Franchise A/c Dr $180,000
To Cash A/c $18,0000
(Being the purchase of a franchise is recorded)
On December 31
Franchise Amortization Fee A/c Dr $13,500
To Franchise A/c $13,500
(Being the franchise amortization fee is recorded)
The computation is shown below:
= $180,000 ÷ 10 years × 9 months ÷ 12 months
= $13,500