Mattson Company receives royalties on a patent it developed several years ago. Royaltles are 4% of net sales, to be received on September 30 for sales from January through June and receivable on March 31 for sales from July through December. The patent rights were distributed on July 1, 2023, and Mattson accrued royalty revenue of $57,000 on December 31, 2023, as follows: General Journal Receivable-royalty revenue Royalty revenue Credit 57,000 Mattson received royaltles of $61,700 on March 31, 2024, and $77,000 on September 30, 2024. In December, 2024, the patent user Indicated to Mattson that sales subject to royalties for the second half of 2024 should be $770,000. Debit 57,000 Required: 1. Prepare any journal entries Mattson should record during 2024 related to the royalty revenue. Note: If no entry is required for a transaction/event, select "No Journal entry required" In the first account field.
Mattson Company receives royalties on a patent it developed several years ago. Royaltles are 4% of net sales, to be received on September 30 for sales from January through June and receivable on March 31 for sales from July through December. The patent rights were distributed on July 1, 2023, and Mattson accrued royalty revenue of $57,000 on December 31, 2023, as follows: General Journal Receivable-royalty revenue Royalty revenue Credit 57,000 Mattson received royaltles of $61,700 on March 31, 2024, and $77,000 on September 30, 2024. In December, 2024, the patent user Indicated to Mattson that sales subject to royalties for the second half of 2024 should be $770,000. Debit 57,000 Required: 1. Prepare any journal entries Mattson should record during 2024 related to the royalty revenue. Note: If no entry is required for a transaction/event, select "No Journal entry required" In the first account field.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Mattson Company receives royalties on a patent It developed several years ago. Royalties are 4% of net sales, to be received on
September 30 for sales from January through June and receivable on March 31 for sales from July through December. The patent
rights were distributed on July 1, 2023, and Mattson accrued royalty revenue of $57,000 on December 31, 2023, as follows:
General Journal
Receivable-royalty revenue
Royalty revenue
57,000
Mattson received royalties of $61,700 on March 31, 2024, and $77,000 on September 30, 2024. In December, 2024, the patent user
Indicated to Mattson that sales subject to royalties for the second half of 2024 should be $770,000.
View transaction list
Required:
1. Prepare any Journal entries Mattson should record during 2024 related to the royalty revenue.
Note: If no entry is required for a transaction/event, select "No Journal entry required" in the first account field.
Journal entry worksheet
<
Debit
57,000
1
2 3
Credit
Record the entry related to the royalty revenue.
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