July 2020, Sykick Software Company licenses its accounting software to RayHawk Corporation at a cost of $30,000 for two years and also enters into a contract to install the software for an additional $3,000. Trident sells the software license with or without installation. The accounting software is not modified or customized by the customer. Required: Prepare journal entry for Sykick to record this transaction assuming that installation will occur in July 2020 when RayHawk pays Sykick $33,000 per their agreement.
July 2020, Sykick Software Company licenses its accounting software to RayHawk Corporation at a cost of $30,000 for two years and also enters into a contract to install the software for an additional $3,000. Trident sells the software license with or without installation. The accounting software is not modified or customized by the customer. Required: Prepare journal entry for Sykick to record this transaction assuming that installation will occur in July 2020 when RayHawk pays Sykick $33,000 per their agreement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In July 2020, Sykick Software Company licenses its accounting software to RayHawk Corporation at a cost of $30,000 for two years and also enters into a contract to install the software for an additional $3,000. Trident sells the software license with or without installation. The accounting software is not modified or customized by the customer.
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