11 Fanny Company’s trademark was licensed to Jean Company for royalties of 40% of sales of the trademarked items. Royalties are payable semi-annually on March 15 for sales in July-December of the prior year, and on September 15 for sales in January-June of the same year. Fanny Company received the following royalties from Jean: 2021 – March 15, P62,000; September 15, P45,000; 2022– March 15, P70,000; September 15, P48,000. Estimated sales of trademarked items for July-December 2022 is P225,000 Under accrual method, royalty revenue for 2022

11 Fanny Company’s trademark was licensed to Jean Company for royalties of 40% of sales of the trademarked items. Royalties are payable semi-annually on March 15 for sales in July-December of the prior year, and on September 15 for sales in January-June of the same year. Fanny Company received the following royalties from Jean: 2021 – March 15, P62,000; September 15, P45,000; 2022– March 15, P70,000; September 15, P48,000. Estimated sales of trademarked items for July-December 2022 is P225,000 Under accrual method, royalty revenue for 2022

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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