Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

III - Licensing and Royalties: Variable Transaction Price Juliet Mindanao Technologies licenses its intellectual property to Francis Bautista Industries. Termo of the arrangement require Francis

image text in transcribed

III - Licensing and Royalties: Variable Transaction Price Juliet Mindanao Technologies licenses its intellectual property to Francis Bautista Industries. Termo of the arrangement require Francis Bautista to pay Juliet Mindanao P500,000 on April 1, 204 when Francis Bautista first obtains access to Juliet Mindanao's intellectual property, and then to pay Juliet Mindanao a royalty of 4% of future sales of products that utilize that intelecto property. Juliet Mindanao anticipates receiving sales-based royalties of P1.000.000 during 24 and P1,500,000/year for the years 20x520x9. Assume Juliet Mindanao accounts for the Fores Bautista license as a right of use, because Juliet Mindanao's actions subsequent to April 1, 2014 will affect the benefits that Francis Bautista receives from access to Juliet Mindanao's intelecto property. Francis Bautista license? P500,000 payment from Francis Bautista Required: 1. Identify the specific citation for accounting for variable consideration arising from solek based royalties on licenses of intellectual property, and consider the relevant GAAP When can Juliet recognize revenue from sales-based royalties associated win the 2. What journal entry would Juliet Mindanao record on April 1, 20x4, when it receives the 3. Assume on December 31, 20x4. Juliet Mindanao receives P1,000,000 for all sales-border royalties earned from Francis Bautista in 20x4. What journal entry would Juliet Mindana record on December 31, 20x4, to recognize any revenue that should be recogniedi 20x4 with respect to the Francis Bautista license that it has not already recognized 4. Assume Juliet Mindanao accounts for the Francis Bautista license as a five-year rigno license to Francis Bautista during the five-year license period. Same requirements in Nel access Juliet Mindanao's intellectual property from April 1. 20x4, though March 31, 2X Juliet Mindanao expects that its ongoing marketing efforts will affect the value of the and 3

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray H. Garrison, Alan Webb, Theresa Libby

12th Canadian Edition

1260193276, 978-1260193275

More Books

Students also viewed these Accounting questions

Question

Have you got a one page summary that you are happy with?

Answered: 1 week ago