Question: Three programmers at Feenix Computer Storage, Inc., write an operating systems control manual for Hill-McGraw Publishing, Inc., for which Feenix receives royalties equal to 12%

Three programmers at Feenix Computer Storage, Inc., write an operating systems control manual for Hill-McGraw Publishing, Inc., for which Feenix receives royalties equal to 12% of net sales. Royalties are payable annually on February 1 for sales the previous year. The editor indicated to Feenix on December 31, 2011, that book sales subject to royalties for the year just ended are expected to be $300,000. Accordingly, Feenix accrued royalty revenue of $36,000 at December 31 and received royalties of $36,500 on February 1, 2012. What adjustments, if any, should be made to retained earnings or to the 2011 financial statements? Explain.

Step by Step Solution

★★★★★

3.39 Rating (165 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The fact that more royalty revenue was received in April than anticip... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

254-B-A-E-A (284).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Q:

Three programmers at Feenix Computer Storage, Ic., write an operating systems control manual for Hill-McGraw Publishing, Inc., for which Feenix receives royalties equal to 12% of net sales. Royalties...

Q:

Aston Ltd is a luxury goods manufacturer in the process of diversifying its business. Aston Ltd has reached an agreement with Chivas Ltd, a small basic materials company, to take over Chivas Ltd. The...

Q:

For February, sales revenue is $300,000, sales commissions are 5% of sales, the sales manager's salary is $40,000, advertising expenses are $13,000, shipping expenses total 1% of sales, and...

Q:

Three programmers at Feenix Computer Storage, Inc., write an operating systems control manual for Hill-McGraw Publishing, Inc., for which Feenix receives royalties equal to 12% of net sales....

Q:

Three programmers at Feenix Computer Storage, Inc., write an operating systems control manual for Hill-McGraw Publishing, Inc., for which Feenix receives royalties equal to 12% of net sales....

Q:

Three programmers at Feenix Computer Storage, Inc., write an operating systems control manual for Hill-McGraw Publishing, Inc., for which Feenix receives royalties equal to 12% of net sales....

Q:

Three programmers at Feenix Computer Storage, Inc., write an operating systems control manual for Hill-McGraw Publishing, Inc., for which Feenix receives royalties equal to 12% of net sales....

Q:

Three programmers at Feenix Computer Storage, Inc., write an operating systems control manual for Hill-McGraw Publishing, Inc., for which Feenix receives royalties equal to 12% of net sales....

Q:

I'm confused by this? Return to question 3 Three programmers at Feenix Computer Storage, Inc., write an operating systems control manual for Hill-McGraw Publishing, Inc., for which Feenix receives...

Q:

Three programmers at Feenix Computer Storage, Inc., write an operating systems control manual for Hill-McGraw Publishing, Inc., for which Feenix receives royalties equal to 12% of net sales....

Q:

Cisneros Company uses a job costing system for its production costs and a predetermined factory overhead rate based on direct labor costs to apply factory overhead to all jobs. During the month of...

Q:

A $100,000, 90-day commercial paper certificate issued by Bell Canada Enterprises was sold on its issue date for $98,950. What annual rate of return (to the nearest 0.001%) will it yield to the buyer?

Q:

Which of the following is not a requirement of the Sarbanes - Oxley Act? Internal audit services can no longer be provided by a publicly traded corporation's external auditors. All publicly traded...

Q:

15. CAPM In the capital asset pricing model (CAPM), a securitys expected return is a. the return on the market portfolio b. the risk-free rate plus the return on the market portfolio c. the return on...

Q:

What differences are there between the trial balance before closing and the trial balance after closing with respect to the following accounts? (a) Accounts Payable. (b) Expense accounts. (c) Revenue...

Q:

What differences are there between the trial balance before closing and the trial balance after closing with respect to the following accounts? (a) Accounts Payable. (b) Expense accounts. (c) Revenue...

Q:

What differences are there between the trial balance before closing and the trial balance after closing with respect to the following accounts? (a) Accounts Payable. (b) Expense accounts. (c) Revenue...

Q:

Please answer both questions thank you! 40. A 10 year annual payment corporate coupon bond has an expected return of 10% and a required return of 12% and a par value of $1,000. The bond's current...

Q:

Question 9 Cator Sdn Bhd has RM500,000 in excess cash and is planning to invest this in marketable securities. A transaction fee of RM8,000 has to be paid for the company to trade in the securities....

Q:

Lourdes Corporation's 10% coupon rate, semiannual payment, $1,000 par value bonds, which mature in 15 years, are callable 3 years from today at $1,050. They sell at a price of $1,132.79, and the...