E11.3 (LO 1, 3, 4) Classification Issues - Intangible Assets
Joni Hyde Inc. has the following amounts recorded in its general ledger at the end of the current
year.
Organization costs $ 24,000
Trademarks 15,000
Discount on bonds payable 35,000
Deposits with advertising agency for ads to promote goodwill of company 10,000
Excess of cost over fair value of net identifiable assets of acquired subsidiary 75,000
Cost of equipment acquired for research and development projects;
the equipment has an alternative future use 90,000
Costs of developing a secret formula for a product that is expected to be
marketed for at least 20 years 80,000
a. On the basis of the information above, compute the total amount to be reported by Hyde for
intangible assets on its balance sheet at year end.
b. If an item is not to be included in intangible assets, explain its proper treatment for reporting
purposes.
NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a cell), into the
yellow shaded input cells.
a. Total Intangible assets on the balance sheet at year end
b. Account Classification
(e.g., Current Asset,
Ledger Accounts etc.) Financial Statement
,
Joni Hyde Inc. has the following amounts recorded in its general ledger at the end of the current
year.
Organization costs $ 24,000
Trademarks 15,000
Discount on bonds payable 35,000
Deposits with advertising agency for ads to promote goodwill of company 10,000
Excess of cost over fair value of net identifiable assets of acquired subsidiary 75,000
Cost of equipment acquired for research and development projects;
the equipment has an alternative future use 90,000
Costs of developing a secret formula for a product that is expected to be
marketed for at least 20 years 80,000
a. On the basis of the information above, compute the total amount to be reported by Hyde for
intangible assets on its balance sheet at year end.
b. If an item is not to be included in intangible assets, explain its proper treatment for reporting
purposes.
NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a cell), into the
yellow shaded input cells.
a. Total Intangible assets on the balance sheet at year end
b. Account Classification
(e.g., Current Asset,
Ledger Accounts etc.) Financial Statement
,
