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Dreighton Engineering Group receives royalties on a technical manual written by two of its engineers and sold to William B. Irving Publishing, Inc. Royalties are

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Dreighton Engineering Group receives royalties on a technical manual written by two of its engineers and sold to William B. Irving Publishing, Inc. Royalties are 10% of net sales, receivable on October 1 for sales in January through June and on April 1 for sales in July through December of the prior year. Sales of the manual began in July 2017 and Dreighton accrued royalty revenue of $35.000 at December 31, 2017 as follows: 35.000 Receivable-royalty revenue Royalty revenue 35.000 Dreighton received royalties of S41,000 on April 1. 2018, and $45,000 on October 1, 2018. Irving indicated to Dreighton on December 31 that book sales subject to royalties for the second half of 2018 are expected to be $550,000. Required: 1. Prepare any necessary journal entry related to royalty revenue for 2018 and record adjustment, if any, made to retained earnings or to the 2017 financial statements. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet 2 3 Record collection of royalties. Note: Enter debits before credits General Journal Debit Credit Date April 01, 2018 Record entry Clear entry View general journal Journal entry worksheet Record collection of royalties. Note: Enter debits before credits. General Journal Debit Credit Date October 01. 2018 Record entry Clear entry View general journal Journal entry worksheet Record year end adjustment for royalties. al Note: Enter debits before credits LI General Journal DARBA Debit Credit December 31, 2018 1 WE Record entry Clear entry View general journal View transaction list Journal entry worksheet 1 2 3 4 Prepare any necessary journal entry to adjust retained earnings or the 2017 financial statements. Note: Enter debits before credits. Date December 31, 2017 General Journal Debit Credit Record entry Clear entry View general journal

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