Question

Presented below is selected information related to Beerbo Inc. at year-end. All these accounts have debit balances. For each item, identify how it should be classified in Beerbo's financial statements.
Cable television franchises
Film contract rights
Music copyrights
Customer lists
Research and development costs
Prepaid expenses
Goodwill
Cash
Brand names
Discount on notes payable
Notes receivable (short-term)
Accounts receivable
Property, plant, and equipment
Organization costs
Land

Answer 1

Answer: Please refer to Explanation

Explanation:

Cable television franchises - INTANGIBLE ASSETS

Film contract rights - INTANGIBLE ASSETS.

Music copyrights - INTANGIBLE ASSETS.

Customer lists - INTANGIBLE ASSETS.

Research and development costs - OPERATING EXPENSES.

Prepaid expenses - CURRENT ASSET

Goodwill - INTANGIBLES

Cash - CURRENT ASSET

Brand names - INTANGIBLE ASSETS

Discount on notes payable - NOTES PAYABLE DEDUCTIBLE.

Notes receivable (short-term) - CURRENT ASSETS

Accounts receivable - CURRENT ASSETS

Property, plant, and equipment - FIXED/ NON-CURRENT ASSETS

Organization costs - START-UP COSTS

Land - NON-CURRENT ASSETS