Dreighton Engineering Group receives royalties on a technical manual written by two of its engineers and sold to William B. Irving Publishing, Inc. Royalties are 10% of net sales, receivable on October 1 for sales in January through June and on April 1 for sales in Ju through December of the prior year. Sales of the manual began in July 2020, and Dreighton accrued royalty revenue of $41,400 at December 31, 2020, as follows: Receivable-royalty revenue Royalty revenue 41,400 41,400 Dreighton received royalties of $49,000 on April 1, 2021, and $53,000 on October 1, 2021. Irving indicated to Dreighton on Decembe 31 that book sales subject to royalties for the second half of 2021 are expected to be $630,000. Required: 1. & 2. Prepare any necessary journal entry related to royalty revenue for 2021 and record adjustment, if any, made to retained earnings in the 2020 financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the

Dreighton Engineering Group receives royalties on a technical manual written by two of its engineers and sold to William B. Irving Publishing, Inc. Royalties are 10% of net sales, receivable on October 1 for sales in January through June and on April 1 for sales in Ju through December of the prior year. Sales of the manual began in July 2020, and Dreighton accrued royalty revenue of $41,400 at December 31, 2020, as follows: Receivable-royalty revenue Royalty revenue 41,400 41,400 Dreighton received royalties of $49,000 on April 1, 2021, and $53,000 on October 1, 2021. Irving indicated to Dreighton on Decembe 31 that book sales subject to royalties for the second half of 2021 are expected to be $630,000. Required: 1. & 2. Prepare any necessary journal entry related to royalty revenue for 2021 and record adjustment, if any, made to retained earnings in the 2020 financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Can you please enter the information clearly without so many spaces? The information is hard to read.
Identify the minimum cardinality of any REA diagram relationship. O or 1. O or N. 1 or N. None of these.
Select the letter of the item below that best matches the definitions that follow. a. Data Files CD ________ b. Lists ________ c. Forms ________ d. Registers ________ e. Reports and graphs ________ f. Restoring a backup ________ g. Icon bar ________ h. Home page ________ i. Backing up a file ________ 1. One click access to QuickBooks Accountant Centers and Home page. 2. The process of rebuilding a backup file to a full QuickBooks Accountant file ready for additional input. 3. Electronic representations of paper documents used to record business activities such as customer invoices, vendor bills, and checks. 4. A big-picture approach of how your essential business tasks fit together organized by logical groups such as customers, vendors, and employees. 5. Groups of names such as customers, vendors, employees, items, and accounts. 6. Contains backups of all the practice files needed for chapter work and completion of assignments. 7. The process of creating a copy of a…
Explain an example of source documents.
Please do not give image format
Explain the meaning of withholding at source
How can forwardrates be used for hedging purposes?
Explain Change in Reporting Entity.
Explain what is included in Form 10-Q and why is it needed.
What are reversing entries, and how do they work?
How do you make a two-dimensional columnar chart in excel?
For what purpose Form 2553 is required?