During 2020, a textbook written by Sandhill Co. personnel was sold to Sandra Publishing, Inc., for royalties of 5% on sales. Royalties are receivable semiannually on March 31, for sales in July through December of the prior year, and on September 30, for sales in January through June of the same year. • Royalty income of $243000 was accrued at 12/31/20 for the period July-December 2020. • Royalty income of $140000 was received on 3/31/21, and $411000 on 9/30/21. • Sandhill learned from Sandra that sales subject to royalty were estimated at $4210000 for the last half of 2021. In its income statement for 2021, Sandhill should report royalty income at $182500. $621500. $518500.
During 2020, a textbook written by Sandhill Co. personnel was sold to Sandra Publishing, Inc., for royalties of 5% on sales. Royalties are receivable semiannually on March 31, for sales in July through December of the prior year, and on September 30, for sales in January through June of the same year. • Royalty income of $243000 was accrued at 12/31/20 for the period July-December 2020. • Royalty income of $140000 was received on 3/31/21, and $411000 on 9/30/21. • Sandhill learned from Sandra that sales subject to royalty were estimated at $4210000 for the last half of 2021. In its income statement for 2021, Sandhill should report royalty income at $182500. $621500. $518500.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter9: Current Liabilities And Contingent Obligations
Section: Chapter Questions
Problem 3RE: Cee Co.s fiscal year begins April 1. At the beginning of its fiscal year, Cee Co. estimates that...
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During 2020, a textbook written by Sandhill Co. personnel was sold to Sandra Publishing, Inc., for royalties of 5% on sales. Royalties are receivable semiannually on March 31, for sales in July through December of the prior year, and on September 30, for sales in January through June of the same year.
| • | Royalty income of $243000 was accrued at 12/31/20 for the period July-December 2020. |
| • | Royalty income of $140000 was received on 3/31/21, and $411000 on 9/30/21. |
| • | Sandhill learned from Sandra that sales subject to royalty were estimated at $4210000 for the last half of 2021. |
In its income statement for 2021, Sandhill should report royalty income at
$182500.
$621500.
$518500.
$551000.
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