InterDigital Inc (IDCC)

[olddog967]

Ia-idcc-fan: A quick accounting lesson.

When funds are collected in advance:

Upon receipt of funds:

Debit - Cash
Credit - Deferred Revenue

When royalties are earned or amortized:

Debit- Deferred Revenue
Credit - Revenue

When funds are due to be received within one year there is an additional entry:

When agreement is signed:

Debit - Accounts Receivable
Credit - Deferred Revenue

When cash is received:

Debit - Cash
Credit - Accounts Receivable

When royalties are earned or amortized:

Debit- Deferred Revenue
Credit - Revenue

If you took basic Accounting 101, set up T accounts to see how it works out.