9. Dynamite Company acquired rights to a patent under a licensing agreement that required an advance royalty payment when the agreement was signed. The entity remitted royalties earned Page 6 of 7 and due under the agreement on October 31 each year. Additionally, on the same date, the entity paid, in advance, estimated royalties for the next year. The entity adjusted prepaid royalties at the end of the year. The entity provided the following information for the year ended December 31, 2020: P 650,000 1,100,000 250,000 On December 31, 2020, what amount should be reported as prepaid royalties? Prepaid royalties Royalty payment (charged to royalty expense) Year-end credit adjustment to expense 1/1 10/31 12/31

9. Dynamite Company acquired rights to a patent under a licensing agreement that required an advance royalty payment when the agreement was signed. The entity remitted royalties earned Page 6 of 7 and due under the agreement on October 31 each year. Additionally, on the same date, the entity paid, in advance, estimated royalties for the next year. The entity adjusted prepaid royalties at the end of the year. The entity provided the following information for the year ended December 31, 2020: P 650,000 1,100,000 250,000 On December 31, 2020, what amount should be reported as prepaid royalties? Prepaid royalties Royalty payment (charged to royalty expense) Year-end credit adjustment to expense 1/1 10/31 12/31

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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AAA Co. assigns some of its patents to other enterprises under a variety of licensing agreements. In some instances, advance royalties are received when the agreements are signed, and in others, royalties are remitted within sixty days after each license year-end. The following data are included in AAA Co.'s December 31 balance sheet: 2019 2020 Royalties receivable Unearned royalties 90,000 60,000 85,000 40,000 During 2020 AAA Co. received royalties' remittances of P200,000. How much should AAA Co. report as royalty income in its income statement for the year ended December 31, 2020?
Ayayai Corporation purchases a patent from Blossom Company on January 1, 2025, for $63,000. The patent has a remaining legal life of 14 years. Ayayai estimates the patent will have a useful life of 10 years, based on expected product innovations in the market. Prepare Ayayai's journal entries to record the purchase of the patent and 2025 amortization. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. List all debit entries before credit entries.) Account Titles and Explanation (To record purchase of patents) (To record amortization of patents) Debit Credit
Ee.74.
5. Answer what is required of the problem.
answer in text form please (without image), Note: .Every entry should have narration please
17.
On January 1, 2020, Elden Ring Co. signed a 12-year lease for warehouse space. The entity has an option to renew the lease for an additional 8-year period on or before January 1, 2024. During January 2022, the entity made substantial improvement to the warehouse. The cost of the improvement was P540,000 with an estimated useful life of 15 years. On December 31, 2022, the entity intended to exercise the renewal option. What is the carrying amount of the leasehold improvement as of December 31, 2022? O a. 510000 O b. 486000 O c. 504000 d. 513000
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