Optima Company produces computer software that Tech Company sells. Optima receives a royalty of 15 percent of sales. Tech Company pays royalties to Optima Company semiannually-on May 1 for sales made in July through December of the previous year and on November 1 for sales made in January through June of the current year. Royalty expense for Tech Company and royalty income for Optima Company in the amount of $6,000 were accrued on December 31, 2008. Cash in the amounts of $6,000 and $10,000 was paid and received on May 1 and November 1, 2009, respectively. Software sales during the July to December 2009 period totaled $150.000.

1. Calculate the amount of royalty expense for Tech Company and royalty income for Optima during 2009.

2. Record the adjusting entry that each company made on December 31, 2009.