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teeyara
Mar 24, 2008, 04:23 AM
Hi all,

What's the journal entry by a company that just granted a $60 million contract to a baseball player??

Thanks for the help!
MaggieMouse
Mar 24, 2008, 07:23 AM
Signing a contact is not a real economic activity and there is no value generated, no goods, no services, therefore doesn't need a journal.
teeyara
Mar 24, 2008, 09:04 AM
Hi MaggieMouse, thanks for your answer... I think you are right since there is no actual transaction in the process of signing a contract.