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 cash basis, royalty revenues for 2022 Group of answer choices 118,000 160,000 138,000 115,000
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 cash basis, royalty revenues for 2022 Group of answer choices 118,000 160,000 138,000 115,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 cash basis, royalty revenues for 2022
Group of answer choices
118,000
160,000
138,000
115,000
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