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Question - Gansac Publishing Company signed a contract with an author to publish her book. The signing took place on January 1, 2016, and a payment of $35,000 was made to obtain a copyright. Gansac expects to sell 200,000 books evenly between 2016 and 2020 at a price of $10 per book.
Required -
1. Prepare journal entries to record the events related to the copyright and sales of the book during 2016 and 2017, assuming that sales were as projected.
2. Next Level How would your answer change if Gansac expected sales of the book to be 110,000 copies in 2016, 70,000 copies in 2017, and 20,000 copies over the remainder of the copyright's useful life?
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