not use ai please Question 2Ott Company acquired rights to a patent from Grey under a licensing agreement that required an advanceroyalty payment when the agreement was signed. Ott remits royalties earned and due under the agreementon October 31 each year. Additionally, on the same date, Ott pays, in advance, estimated royalties for thenext year. Ott adjusts prepaid royalties at year-end. Information for the year ended December 31, year 2, isas follows:DateJanuary 1, year 2 Prepaid royaltiesAmount$ 65,000October 31, year 2 Royalty payment (charged to royalty expense) 120,000In its December 31, year 2 balance sheet, Ott should report prepaid royalties of$100,000.$55,000.$85,000.$65,000.

The key information includes: At this end of the Year 1 or the beginning of Year 2, there are…

Answered: Question 2 Ott Company acquired rights…

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

SM Company acquired rights to a patent under a licensing agreement that required an advance royalty payment when the agreement was signed. The entity remitted royalties earned and due under the agreement on October 31 each year. Additionally, on the same date, the entity paid, in advance, estimated royalties for the next year. The entity adjusted prepaid royalties at the end of the year. The entity provided the following information for the year ended December 31, 2020: 1/1 Prepaid royalties P 650,000 10/31 Royalty payment (charged to royalty expense) 1,100,000 12/31 Year-end credit adjustment to expense250,000 On December 31, 2020, what amount should be reported as prepaid royalties?
9. Dynamite Company acquired rights to a patent under a licensing agreement that required an advance royalty payment when the agreement was signed. The entity remitted royalties earned Page 6 of 7 and due under the agreement on October 31 each year. Additionally, on the same date, the entity paid, in advance, estimated royalties for the next year. The entity adjusted prepaid royalties at the end of the year. The entity provided the following information for the year ended December 31, 2020: P 650,000 1,100,000 250,000 On December 31, 2020, what amount should be reported as prepaid royalties? 1/1 Prepaid royalties Royalty payment (charged to royalty expense) Year-end credit adjustment to expense 10/31 12/31
General accounting
Please help me in accordance with IFRS 15 Modern Engineering (ME) entered into a contract for 3 - year maintenance services with a manufacturing concern. Same service will be rendered over 3 - year period. Contract required 100% upfront fees of 300,000 payable at the time of agreement on January 1, 2018. Prevailing market interest rate for ME is 12%. ME prepares its financial statements on 31st December every year. Required: All journal entries for above transaction.
abc general accounting
journal entries needed for march 31, sept 30, and dec 31
6. Company acquires copyrights from authors, paying advance royalties in some cases, and in others, paying royalties within 30 days of year-end. Park reported royalty expense of P375,000 for the current year ended December 31. The following data are included in Park’s balance sheets. January 1 December 31 Prepaid royalties P60,000 P50,000 Royalties payable 75,000 90,000 During the year, Park made royalty payments totaling
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…
15. On Jan. 1, 20x1, Hurt Co. entered into a franchise agreement with Hero Co. The franchise contract gives Hero Co. the right to use Hurt's trademark and proprietary processes for a period of 4 years. The franchise requires payment of an upfront fee of P1,000,000, payable at contract inception, and 5% monthly royalty based on sales. Aside from the granting of the license, the franchise agreement also requires Hurt Co. to undertake pre-opening activities to setup the contract and post- commencement activities, such as research and development and marketing campaigns, to support the intellectual property. Although the activities do not result in the direct transfer of a good or service to Hero Co. as the activities occur, it is expected that Hero Co. will benefit from them. All the necessary preparations were completed and Hero Co. started business operations on January 31, 20x1. Hero had total sales of P9,000,000 in 20x1. How much revenue would Hurt Co, recognize in 20x1? a. 1,450,000…
Recording Revenue Under Different Repurchase Agreements On January 1, 2020, Miller Inc. sells equipment to Smith Inc. for $132,000. As stipulated in the revenue contract, Miller Inc. will buy back the equipment on December 31, 2020, for $141,240. The relevant interest rate is 7% a. Prepare the seller’s journal entry on January 1, 2020. Date Account Name Dr. Cr. Jan. 1, 2020 Answer Answer Answer Answer Answer Answer b. Prepare the seller’s journal entry on December 31, 2020. Date Account Name Dr. Cr. Dec. 31, 2020 Answer Answer Answer Answer Answer Answer To recognize interest. Dec. 31, 2020 Answer Answer Answer Answer Answer Answer To record payment. c. Assume instead that Miller has the option to buy back the equipment and the fair value of the equipment is expected to decline through 2020. How would the answers to parts a and b change (if at all)? Date Account Name Dr. Cr. Jan. 1,…
Topic: REVENUE FROM CONTRACTS WITH CUSTOMERS Requirement: Provide the entries during the first 90 days of the contract (assume that the product was not returned)
During 2020, a textbook written by Sandhill Co. personnel was sold to Sandra Publishing, Inc., for royalties of 5% on sales. Royalties are receivable semiannually on March 31, for sales in July through December of the prior year, and on September 30, for sales in January through June of the same year. • Royalty income of $243000 was accrued at 12/31/20 for the period July-December 2020. • Royalty income of $140000 was received on 3/31/21, and $411000 on 9/30/21. • Sandhill learned from Sandra that sales subject to royalty were estimated at $4210000 for the last half of 2021. In its income statement for 2021, Sandhill should report royalty income at $182500. $621500. $518500. $551000.

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS