Ship Publishing signed a contract with an artist to publish his artwork into large format posters to resell. The contract was signed on January 1, 2014, and a payment of $15,000 was made to obtain copyright privileges. Ship sold 15,000 posters each year starting in 2014 at a price of $15. The copyright is expected to be useful for 3 years.
Required:
Prepare the journal entries for 2014 and 2015.

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The Answer of Ship Publishing signed a contract with an artist to publish his artwork into large format posters to resell. The contract was signed on January 1, 2014, and a payment of $15,000 was made to obtain copyright privileges. Ship sold 15,000 posters each year starting in 2014 at a price of $15. The copyright is expected to be useful for 3 years.
Required:
Prepare the journal entries for 2014 and 2015.

Ship Publishing Signed a Contract with an Artist to Publish