Question - Frick Corp.'s trademark was licensed to Frack Co. for royalties of 15% of sales of the trademarked items. Royalties are payable semiannually on March 15 for sales in July through December of the prior year, and on September 15 for sales in January through June of the same year. Frick received the following royalties from Frack:
|
Year
|
March 15
|
September 15
|
|
2014
|
$10,000
|
$15,000
|
|
2015
|
12,000
|
17,000
|
Frack estimated that sales of the trademarked items would total $90,000 for July through December 2015. Prepare any required general journal entries (without explanation) to record Frick's royalty receipts from Frack for the year 2015. Prepare any required general journal and adjusting entries (without explanation) for the year ending 12/31/15. If no entry is required then identify this fact in the journal.