Three programmers at Feenix Computer Storage, Inc., write an operating systems control manual for Hill-McGraw Publishing, Inc.,

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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, 2016, 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, 2019. What adjustments, if any, should be made to retained earnings or to the 2016 financial statements? Explain.
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Intermediate Accounting

ISBN: 9781259722660

9th Edition

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

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