Summit industries has the following accounts solve this accounting questions Summit Industries has the following accounts in its December 31,2023, trial balance:Trading Securities $45,000⚫ Trademarks $180,000• Prepaid Rent $15,000Copyright $260,000Research Costs $75,000⚫ License Agreements $140,000Prepare the intangible assets section of the balance sheet.

Step 1:The intangible assets section of the balance sheet is shown under the non-current assets…

Answered: Summit Industries has the following…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 10MC

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The general ledger of Megan Corporation as of December 31, 2018, includes the following accounts: Copyrights $ 30,000 Deposits with advertising agency (will be used to promote goodwill) 27,000 Bond sinking fund 70,000 Excess of cost over fair value of identifiable net assets of acquired subsidiary 390,000 Trademarks 120,000 In the preparation of Megan's statement of financial position as of December 31, 2018, what should be reported as total intangible assets?
At December 31, 2023, Sandhill Corp's general ledger includes the following account balances: Copyrights $52500 Deposits with advertising agency (will be used to promote goodwill) 43000 Discount on bonds payable 74000 Excess of cost over fair value of identifiable net assets of acquired subsidiary 589500 Trademarks 106000 In the preparation of Sandhill's balance sheet as of December 31, 2023, what should be reported as total intangible assets? O $158500 O $748000 $791000 O $822000
On May 1, Soriano Co. reported the following account balances along with their estimated fair values: Carrying Amount Fair Value Receivables $ 144,100 $ 144,100 Inventory 77,400 77,400 Copyrights 135,500 509,500 Patented technology 901,000 744,000 Total assets $ 1,258,000 $ 1,475,000 Current liabilities $ 235,000 $ 235,000 Long-term liabilities 686,000 671,300 Common stock 100,000 Retained earnings 237,000 Total liabilities and equities $ 1,258,000 On that day, Zambrano paid cash to acquire all of the assets and liabilities of Soriano, which will cease to exist as a separate entity. To facilitate the merger, Zambrano also paid $133,500 to an investment banking firm. The following information was also available: Zambrano further agreed to pay an extra $87,600 to the former owners of Soriano only if they meet certain revenue goals during the…
Carla Vista Co., organized in 2024, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2025 and 2026, C 7/1/25 10/1/25 12/31/25 1/2/26 3/1/26 4/1/26 6/1/26 9/1/26 Intangible Assets 8-year franchise; expiration date 6/30/33 Advance payment on laboratory space (2-year lease) Net loss for 2025 including state incorporation fee, $3,000, and related legal fees of organizing. $7,000 (all fees incurred in 2025) Patent purchased (10-year life) Cost of developing a secret formula (indefinite life) Goodwill purchased (indefinite life) Legal fee for successful defense of patent purchased above Research and development costs Account Titles and Explanation (To clear the Intangible Assets) (To record current amount for Franchises) (To record current amount for Rents) Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the…
On May 1, Soriano Co. reported the following account balances along with their estimated fair values: Carrying Amount Fair Value Receivables $ 188,400 $ 188,400 Inventory 76,600 76,600 Copyrights 146,000 522,000 Patented technology 864,000 646,000 Total assets $ 1,275,000 $ 1,433,000 Current liabilities $ 182,000 $ 182,000 Long-term liabilities 700,000 682,000 Common stock 100,000 Retained earnings 293,000 Total liabilities and equities $ 1,275,000 On that day, Zambrano paid cash to acquire all of the assets and liabilities of Soriano, which will cease to exist as a separate entity. To facilitate the merger, Zambrano also paid $123,000 to an investment banking firm. The following information was also available: Zambrano further agreed to pay an extra $74,000 to the former owners of Soriano only if they meet certain revenue goals during the…
The general ledger of Sunland Corporation as of December 31, 2021, includes the following accounts: Copyrights $ 56000 Deposits with advertising agency (will be used to promote goodwill) 33000 Discount on bonds payable 76000 Excess of cost over fair value of identifiable net assets of Acquired subsidiary 540000 Trademarks 71000 In the preparation of Sunland's balance sheet as of December 31, 2021, what should be reported as total intangible assets? $644000. $611000. $667000. $700000.
Oz Corporation has the following assets at year-end: Patents (net), 26,000; Land, 50,000; Buildings, 175,000; Accumulated Depreciation: Buildings, 57,500; Investment in Held-to-Maturity Bonds, 12,000; Equipment, 95,000; and Accumulated Depreciation: Equipment, 25,000. Prepare the property, plant, and equipment section of Ozs year-end balance sheet.
Samoa Limited is preparing its statement of financial position as of December 31, 2023. The following financial information is extracted from the ledger:- Land $340,000; Buildings $320,000; Accumulated depreciation - Buildings $90,000; Patents $180,000; Investment property $510,000; Ordinary share capital $870,000; Retained earnings $163,000; Revaluation reserve $66,000. Additional information is available:- a. Notes payable $560,000 issued on December 31, 2023. The notes will be paid in cash installments of $ 53,000 each on Dec. 31. The first installment (principal repayment $50,000, interest expense $3,000) will be paid on December 31, 2024. b. Prepaid rent of $ 45,000, covering January 1, 2024 to June 30, 2025. C. d. e. f. Unearned revenues $36,000 for services to be performed in 2024. Investment of $150,000 in the US treasury bills. The maturity date will be January 20, 2024. Investment in Gabon's shares is $240,000. The company plans to sell half of the shares by 2024. The…
Gawain's balance sheet for at 31/12/X1 is shown below Buildings Equipment Inventory Cash & Receivables £'000 £'000 450 2,100 £1NV Shares Reserves 1800 975 1,075 150 10% Loan Stock Payables 600 400 3,775 Equity & Liabilities 3,775 Assets Assume that new plant could have been purchased on 01/01/X1 as follows: a) Buy new plant (fair value £600,000, life 6 years) from a 2:9 rights issue made at a premium of 50p per share. b) Instead, lease this plant over 6 years with interest at 20% together with annual repayments of £180,000. Prepare amended balance sheets at 31/12/X1 for each option a) and b) above. c) Contrast Finance Leases with Operating Leases
On May 1, Soriano Co. reported the following account balances along with their estimated fair values: Carrying Amount Fair Value 151,000 80,000 587,000 652,000 1,470,000 Receivables 151,000 80,000 Inventory Copyrights Patented technology 168,000 855,000 $ 1, 254,000 Total assets 237,000 $ 694,000 100,000 223,000 Current liabilities 237,000 Long-term liabilities Common stock 681, 000 Retained earnings Total liabilities and equities $ 1,254,000 On that day, Zambrano paid cash to acquire all of the assets and liabilities of Soriano, which will cease to exist as a separate entity. To facilitate the merger, Zambrano also paid $105,000 to an investment banking firm. The following information was also available: • Zambrano further agreed to pay an extra $82,400 to the former owners of Soriano only if they meet certain revenue goals during the next two years. Zambrano estimated the present value of its probability adjusted expected payment for this contingency at $41,200. Soriano has a…
Sandhill Co., organized in 2024, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2025 and 2026. 7/1/25 10/1/25 12/31/25 1/2/26 3/1/26 4/1/26 6/1/26 9/1/26 Intangible Assets 8-year franchise; expiration date 6/30/33 Advance payment on laboratory space (2-year lease) Net loss for 2025 including state incorporation fee, $1,000, and related legal fees of organizing, $5,000 (all fees incurred in 2025) Patent purchased (10-year life) Cost of developing a secret formula (indefinite life) Goodwill purchased (indefinite life) Legal fee for successful defense of patent purchased above Research and development costs $60,000 26,400 12,400 84,400 85,000 277,000 12,995 180,000 Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the entries as of December 31, 2026, recording any necessary amortization. (Ignore income tax…
Blue Corporation's adjusted trial balance contained the following asset accounts at December 31, 2020: Prepaid Rent $14,600, Goodwill $54,400, Franchise Fees Receivable $3,900, Franchises $44,800, Patents $30,890, and Trademarks $12,010. Prepare the intangible assets section of the balance sheet.

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Summit Industries has the following accounts in its December 31, 2023, trial balance: Trading Securities $45,000 ⚫ Trademarks $180,000 • Prepaid Rent $15,000 Copyright $260,000 Research Costs $75,000 ⚫ License Agreements $140,000 Prepare the intangible assets section of the balance sheet.