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    teeyara's Avatar
    teeyara Posts: 2, Reputation: 1
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    #1

    Mar 24, 2008, 04:23 AM
    Contract journal entry
    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's Avatar
    MaggieMouse Posts: 226, Reputation: 8
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    #2

    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's Avatar
    teeyara Posts: 2, Reputation: 1
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    #3

    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.
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