Juliet Mindanao Technologies licenses its intellectual property to Francis Bautista industries. Terms of the arrangement require Francis Bautista to pay Juliet Mindanao P500,000 an April 1, 20x4 when Francis Bautista first obtains access to Juliet Mindanao's intellectual property, and then to pay Julet Mindanao a royalty of 4% of future sales of products that utilize that intellectual property, Juliet Mindanao anticipates receiving sales-based royalties of P1,000,000 during 20x4 and P1.500.000/year for the years 20x5-20x9. Assume Juliet Mindanao accounts for the Francis Bautista license as a right of use, because Juliet Mindanao's actions subsequent to April 1, 20x4 will affect the benefits that Francis Bautista receives from access to Jullet Mindanao's intellectual property. NOTE: Please answer LETTER D ONLY b. What journal entry would Juliet Mindanao record on April 1. 20x4, when it receives the P500.000 payment from Francis Bautista? c. Assume on December 31, 20x4, Juliet Mindanao receives P1,000,000 for all saler-based royalties earned from Francis Bautista in 20x4. What journal entry would Juliet Mindanao record on December 31, 20x4, to recognize any revenue that should be recognized in 20x4 with respect to the Francis Bautista icense that it has not already recognized? d. Assume Juliet Mindanao accounts for the Francis Bautista license as a five-year right to access Juliet Mindanao's intellectual property from April 1, 20x4, though March 31, 20x9. Juliet Mindanao expects that its ongoing marketing efforts will affect the value of the license to Francis Bautista during the five-year license period, Same requirements in b. and c.
Juliet Mindanao Technologies licenses its intellectual property to Francis Bautista industries. Terms of the arrangement require Francis Bautista to pay Juliet Mindanao P500,000 an April 1, 20x4 when Francis Bautista first obtains access to Juliet Mindanao's intellectual property, and then to pay Julet Mindanao a royalty of 4% of future sales of products that utilize that intellectual property, Juliet Mindanao anticipates receiving sales-based royalties of P1,000,000 during 20x4 and P1.500.000/year for the years 20x5-20x9. Assume Juliet Mindanao accounts for the Francis Bautista license as a right of use, because Juliet Mindanao's actions subsequent to April 1, 20x4 will affect the benefits that Francis Bautista receives from access to Jullet Mindanao's intellectual property.
NOTE: Please answer LETTER D ONLY
b. What
c. Assume on December 31, 20x4, Juliet Mindanao receives P1,000,000 for all saler-based royalties earned from Francis Bautista in 20x4. What journal entry would Juliet Mindanao record on December 31, 20x4, to recognize any revenue that should be recognized in 20x4 with respect to the Francis Bautista icense that it has not already recognized?
d. Assume Juliet Mindanao accounts for the Francis Bautista license as a five-year right to access Juliet Mindanao's intellectual property from April 1, 20x4, though March 31, 20x9. Juliet Mindanao expects that its ongoing marketing efforts will affect the value of the license to Francis Bautista during the five-year license period, Same requirements in b. and c.
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