Question
Frick Corp.'strademarkwaslicensedtoFrackCo.forroyaltiesof15%ofsalesofthetrademarkeditems. Royaltiesarepayablesemiannuallyon March15forsalesinJulythroughDecemberofthe prioryear,andonSeptember15 forsalesinJanuarythroughJuneofthesameyear.FrickreceivedthefollowingroyaltiesfromFrack: Year March15 September15 2014 $10,000 $15,000 2015 12,000 17,000 Frackestimatedthatsalesofthetrademarkeditemswouldtotal$90,000forJulythrough December2015.Prepare any required general journal entries (without explanation) to
FrickCorp.'strademarkwaslicensedtoFrackCo.forroyaltiesof15%ofsalesofthetrademarkeditems.Royaltiesarepayablesemiannuallyon March15forsalesinJulythroughDecemberofthe prioryear,andonSeptember15 forsalesinJanuarythroughJuneofthesameyear.FrickreceivedthefollowingroyaltiesfromFrack:
| Year | March15 | September15 |
| 2014 | $10,000 | $15,000 |
| 2015 | 12,000 | 17,000 |
Frackestimatedthatsalesofthetrademarkeditemswouldtotal$90,000forJulythrough December2015.Prepare any required general journal entries (without explanation) to record Frick's royalty receipts fromFrackfor the year 2015. Prepare any required general journal andadjusting entries (without explanation) for the year ending 12/31/15. If no entry is required then identify this fact in the journal.
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Managerial Accounting
Authors: Stacey WhitecottonRobert LibbyRobert Libby, Patricia LibbyRobert Libby, Fred Phillips
1st Edition
