Presented below is selected information related to Martin Burke Inc. at year-end
ID: 2419569 • Letter: P
Question
Presented below is selected information related to Martin
Burke Inc. at year-end. All these accounts have debit balances.
Cable television franchises
Film contract rights
Music copyrights
Customer lists
Research and development costs Prepaid expenses
Goodwill
Covenants not to compete
Cash
Brand names
Discount on notes
payable Notes receivable
Accounts receivable
Investments in affiliated companies
Property, plant, and equipment Organization costs
Internet domain name
Land
Instructions
Identify which items should be classified as an intangible asset. For those items not classified as an intan-
gible asset, indicate where they would be reported in the financial statements.
Explanation / Answer
Intangible Assets
1.Cable television franchises
2.Film contract rights
3.Music copyrights
4.Customer lists
5.Goodwill
6.Covenants not to compete
7.Brand names
8.Internet domain name
Assets other than Intangible Assets
Research and development costs - Operating Expense
Prepaid expenses – Current Asset
Cash – Current Asset
Discount on notes payable – Contra Liability
Notes receivable – Assets [It can be either Current Assets or Long term Assets]
Accounts receivable– Current Asset
Investments in affiliated companies - Investments
Property, plant, and equipment – Long Term Asset
Organization costs – Operating Expenses
Land – Long Term Asset