Paris Company produces computer software that is sold by Bond Systems. Paris receives a royalty of Recognition 15 per cent of sales. Royalties are paid by Bond Systems and received by Paris semiannually on May 1 for sales made July through December of the previous year and on November 1 for sales made January through June of the current year. Royalty expense for Bond Systems and royalty income for Paris in the amount of 12,000 were accrued on December \(31,20 \times 1\). Cash in the amounts of 12,000 and 20,000 was paid and received on May 1 and November 1, 20x2, respectively. Software sales during the July to December, \(20 \times 2\) period totaled 300,000 .

1. Calculate the amount of royalty expense for Bond Systems and royalty income for Paris during \(20 \times 2\).

2. Record the appropriate adjusting entries made by each of the companies on December \(31,20 \times 2\).