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, 2021, that book sales subject to royalties for the year just ended are expected to be $290,000. Accordingly, Feenix accrued royalty revenue of $34,800 at December 31 and received royalties of $35,290 on February 1, 2022. What adjustments, if any, should be made to retained earnings or to the 2021 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 1 > Record adjustments to be made to retained earnings for 2021 financial statements. Note: Enter debits before credits. General Journal Debit Credit Event 1 Van Frank Telecommunications has a patent on a cellular transmission process. The company has amortized the $22.50 million cost of the patent on a straight-line basis since it was acquired at the beginning of 2017. Due to rapid technological advances in the industry, management decided that the patent would benefit the company over a total of six years rather than the nine-year life being used to amortize its cost. The decision was made at the end of 2021 (before adjusting and closing entries). What is the appropriate adjusting entry for patent amortization in 2021 to reflect the revised estimate? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).) View transaction list Journal entry worksheet Record the adjusting entry for patent amortization in 2021. Note: Enter debits before credits. Event General Journal Debit Credit 1 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, 2021, that book sales subject to royalties for the year just ended are expected to be $290,000. Accordingly, Feenix accrued royalty revenue of $34,800 at December 31 and received royalties of $35,290 on February 1, 2022. What adjustments, if any, should be made to retained earnings or to the 2021 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 1 > Record adjustments to be made to retained earnings for 2021 financial statements. Note: Enter debits before credits. General Journal Debit Credit Event 1 Van Frank Telecommunications has a patent on a cellular transmission process. The company has amortized the $22.50 million cost of the patent on a straight-line basis since it was acquired at the beginning of 2017. Due to rapid technological advances in the industry, management decided that the patent would benefit the company over a total of six years rather than the nine-year life being used to amortize its cost. The decision was made at the end of 2021 (before adjusting and closing entries). What is the appropriate adjusting entry for patent amortization in 2021 to reflect the revised estimate? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).) View transaction list Journal entry worksheet Record the adjusting entry for patent amortization in 2021. Note: Enter debits before credits. Event General Journal Debit Credit 1
