A Gaming App: Introduction to Accounting Framework, Concepts, and Issues

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This case is based on a hypothetical company that was newly established for a mobile gaming app. Before the company was incorporated, an experienced game developer and "creative strategist," Leon, and Lucas, a gaming influencer and streamer who was very popular in the Spanish-speaking world, had jointly created a game called sangre y acero®, meaning "Blood and Steel" in Spanish. Lucas's name on his streaming channel on Twitch and YouTube was Rey de Acero®, meaning "King of Steel" in Spanish. This game had passed most of the game-testing stages. A trademark had been obtained for the game's name and logo. A copyright was also obtained for the game's codes, art, music, scripts, and story and plot. These were the pre-incorporation events. Later, Leon and Lucas contributed their sangre y acero® trademark and this copyrighted game to the incorporation of the company. Their friends contributed funds. A new company, SYA Inc., was formed on 1 January 2022. On 1 July 2022, the app was fully launched. The purpose of the case is to have students prepare financial statements based on provided financial data, touching on a wide array of accounting concepts and common issues.
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