User Account

All Pages

What amount of royalty expense should be reported

Assignment Help Accounting Basics
Reference no: EM132727311

Don Mario Company acquires copyright from authors, paying in advance royalties in some cases and others, paying royalties within 30 days of year-end. Don Mario reported royalty expense of P375,000 for the year ended December 31, 2X20.

The following data are included in the corporation's December balance sheet:

                                   2X19             2X20

Prepaid royalties    P60,000        P50,000

Royalties payable    75,000    90,000

Problem 1: Under the cash basis, what amount of royalty expense should be reported in 2X20 profit or loss?

Reference no: EM132727311

Questions Cloud

Describe effective interventions for using childhood : Of major concern to educators and psychologists alike is the relationship of childhood poverty and deprivation on suppressed cognitive development, executive.
What is the managerial accountant primary objective : When a single volume based cost driver is used to apply manufacturing overhead, what is the managerial accountant primary objective in selecting the cost driver
What is the increase to d net income for tax purposes : Class 12 transactions occurred during the year. What is the increase to D's net income for tax purposes, if any, for the current year as a result of the sale?
How cultures define adulthood vary dramatically : How cultures define adulthood vary dramatically. For some, adulthood may be religious celebration milestones and for others it may be based on a physical change
What amount of royalty expense should be reported : Don Mario reported royalty expense of P375,000 for the year ended December 31, 2X20. What amount of royalty expense should be reported in 2X20 profit or loss?
Write a brief summary of the research covered : Under the heading "Summary," write a brief summary of the research covered. Make sure to include the research question, hypothesis, method, and results.
Find how much rental income should be reported : Find how much rental income should be reported by Patrick Company in 2X20? Unearned rental income, January 1, 2X20 P50,000
What is the amount of purchases under the cash basis on dec : What is the amount of purchases under the cash basis on December 31, 2X20? Accounts payable, December 31, 2X19 P900,000.
What is the balance in the Investment in Sub Co account : At the end of 2020, after recording all the necessary journal entries, what is the balance in the Investment in Sub Co. account

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determine the ppa the company should record

ABC Company overstated 20Y1 revenue by $10,000. The error also affected 20Y2 by overstating revenue by $5,000. The company discovered the error in 20Y3, which included an overstatement to revenue of $3,000.The company reports only 20Y3 on the current..

  Prepare the journal entry necessary to record the increase

Prepare the journal entry (if any) necessary to record this increase in fair value. It is expected that the cost of disposal is still $21,600.

  Statement of cash flows from home depot

Analyze each of the three sections and explain what happened in each section

  Determine premium expense to be reported in income statement

Determine the premium expense to be reported in the income statement and the estimated liability for premiums on the balance sheet for 2010 and 2011

  Discuss the information most relevant to the case

Summary of the situation/analysis of issues. This is the section in which you may use tools such as a SWOT analysis or other analytical tools.

  Accounting section 121

According to Sec. 121, individuals who sell or exchange their personal residence after May 6, 1997, may exclude part or all of the gain if the house was owned and occupied as a principal residence for

  Uncertainty related to earnings quality

Because of the uncertainty for the future cash flows and the discount rate, we cannot complete the balance sheet if we do have the income statement first. (a) Please discuss for how the uncertainty is related to earnings quality. (b) Can the uncer..

  From which of the following may the auditor liability arise

Contract law is the basis for the legal liability at common law of an auditor to his/her client. From which of the following may the auditor's liability arise?

  The market price of a companys common stock increased from

the market price of a companys common stock increased from 15 to 18. earnings per share of common stock remained

  Discuss the qualitative concept of comparability

Discuss the qualitative concept of comparability. In your opinion, would the financial statements of companies operating in one of the foreign countries listed above be comparable to a U.S. company's financial statements? Explain.

  Calculate the cost recovery deduction

Sam has, however, made an election to not have the uniform capitalization rules apply to the farming business. Sam does elect not to take additional first-year depreciation. Determine the cost recovery deduction for 2009.

  Explain what is diluted EPS

Question - Compaq Ltd has a net income after tax of $2 000 000 for the year ended 30 June 2018. Explain what is diluted EPS

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd