Dreighton Engineering Group receives royalties on a technical manual written by two of its engineers and sold
Question:
Dreighton received royalties of $36,000 on April 1, 2011, and $40,000 on October 1, 2011. Irving indicated to Dreighton on December 31 that book sales subject to royalties for the second half of 2011 are expected to be $500,000.
Required:
1. Prepare any journal entries Dreighton should record during 2011 related to the royalty revenue.
2. What adjustments, if any, should be made to retained earnings or to the 2010 financial statements? Explain.
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Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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