Question
2 questions from chapter 9 1. E9-12 Computing and Reporting the Acquisition and Amortization of Three Different Intangible Assets [LO 9-6] Bluestone Company had three
2 questions from chapter 9
1.
E9-12 Computing and Reporting the Acquisition and Amortization of Three Different Intangible Assets [LO 9-6]
Bluestone Company had three intangible assets at the end of the current year:
- A patent purchased this year from Miller Co. on January 1 for a cash cost of $1,600. When purchased, the patent had an estimated life of 8 years.
- A trademark was registered with the federal government for $10,000. Management estimated that the trademark could be worth as much as $240,000 because it has an indefinite life.
- Computer licensing rights were purchased this year on January 1 for $42,000. The rights are expected to have a six-year useful life to the company.
Question: Show how these assets and any related expenses should be reported on the balance sheet and income statement for the current year. Second question:
E9-1 Preparing a Classified Balance Sheet [LO 9-1, LO 9-7]
The following is a list of account titles and amounts (in millions) reported at December 27, 2015, by Hashey, Inc. a leading manufacturer of games, toys, and interactive entertainment software for children and families:
Accounts Receivable | $ | 1,133 | Equipment | $ | 506 | ||
Accumulated Amortization | 761 | Goodwill | 611 | ||||
Accumulated Depreciation | 516 | Inventories | 366 | ||||
Allowance for Doubtful Accounts | 43 | Land | 7 | ||||
Buildings | 256 | Licensing Rights | 1,851 | ||||
Cash and Cash Equivalents | 696 | Prepaid Rent | 371 | ||||
Required:
- Prepare the asset section of a classified balance sheet for Hashey, Inc.
- Using Hasbros 2015 Net Sales Revenue of $4,530 (million), its Net Fixed Assets of $240 (million) at December 28, 2014, and its Net Fixed Assets computed at December 27, 2015, calculate the fixed asset turnover ratio for 2015
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