View Full Version : Royalties journal entry
stayhomemom
Oct 25, 2007, 03:04 PM
Here is my question:
Paid royalties due on first weeks sales ( $800 sales of first week)
Is this correct?
Royalities divideds $40
Cash $40
THANKS!!
CaptainForest
Oct 25, 2007, 11:28 PM
Assuming that on $800 of sales you must pay $40 in royalties
Dr. Royalties Expense 40
Cr. Cash 40
You called it royalties dividends….that is fine, you can call the account whatever you want…as long as you know the account is an expense account.
stayhomemom
Oct 26, 2007, 02:17 PM
Thank you very much for your quick response!!
kpajuelas
Mar 20, 2013, 06:46 PM
Hi!
I am due to pay my 1st installment of royalty by April, how will I record it?