Presented below is selected information related to Martin Burke Inc. at year-end

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

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