Brief Exercise 20-6 Book royalties [LO20-4] Three programmers at Feenix Computer

Question

Brief Exercise 20-6 Book royalties [LO20-4] 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 able annually on February 1 for sales the previous year. The editor indicated to Feenix on December 31, 6, that book sales subject to royalties for the year just ended are expected to be $280,000. Accordingly Feenix accrued royalty revenue of $33,600 at December 31 and received royalties of $34,080 on February 1, 2017 What adjustments, if any, should be made to retained earnings or to the 2016 financial statements? (If no entry is required for a particular event, select "No joumal entry required" in the first account field.) View transaction list Journal entry worksheet Record adjustments to be made to retained earnings for 2016 financial statements. eb ts before credits. Event General Journal DebitCredit TOSHIBA 2 3

Explanation / Answer

Debit Credit Retained earning 480 Royality payable 480 Difference amount of royality provided and actual royality Assumed Financials not yet signed

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