Question
It's filling out the balance sheet or income statement but I'm not sure which one I should write the numbers on. 1. Starbucks licenses some
It's filling out the balance sheet or income statement but I'm not sure which one I should write the numbers on.
1. Starbucks licenses some technology to McDonalds. McDonalds pays $120 million to use the technology for 5 years. Record the initial payment by McDonalds to Starbucks.
2. 1 months has passed since the McDonalds licensing term, how would you record an adjustment for this (there were no adjustments made since the initial cash receipt
=Balance Sheet=
-Assets
-----Cash
------Investments
-----Accounts Receivable, Gross
----- Allowance for bad debt
----- Inventory
----- Prepaid Expenses
----- PP&E
----- Accumulated Deprecation
----- Goodwill
----- Intangible Assets
-Liabilities + Equity
----- Accounts Payable
----- Deferred Revenues
----- Warranty Liabilities
----- Bonds Payable
----- Discount on Bonds
----- Common Stock (Contributed Capital)
----- Additional Paid In capital
----- Retained Earnings (Earned Capital)
=Income Statement=
-----Revenues
-----Cost of Good Sold
-----Description
-----Expenses/ other
-----Net Income
Where and what numbers should I put on in this case?
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Advanced Digital Auditing Theory And Practice Of Auditing Complex Information Systems And Technologies
Authors: Egon Berghout, Rob Fijneman, Lennard Hendriks, Mona De Boer, Bert-Jan Butijn
1st Edition
3031110889, 978-3031110887
