Question

Classifying Intangible Costs on the Balance Sheet The adjusted trial balance of Lawrence Corporation showed the following selected account balances (all debits) at December 31, 2020, the end of the annual reporting period. Cash $17,600 Trademark $7,600 Patent, net 5,600 Prepaid insurance (two-thirds is long-term) 2,400 Accounts receivable (net of allowance) 36,000 Copyright, net 4,800 Prepaid rent expense (current) 400 Equipment (net of accumulated depreciation) 120,000 Marketable equity securities (current) 20,000 Notes receivable, trade (short-term) 4,000 Franchise, net 7,200 R&D expense 15,600 Rent revenue receivable (current) 1,200 Noncompete agreement 4,800 Goodwill 24,000 Required Prepare the asset section of Lawrence's balance sheet at December 31, 2020. Include the proper balance sheet classifications with separate captions for current assets; property, plant, and equipment; intangible assets; and other assets. Assume that all required amortization entries have been made. Note: List all accounts within each balance sheet category in alphabetical order. Lawrence Corp. Balance Sheet-Selected Balances December 31, 2020 Assets Current Assets Property, plant, and equipment Intangible assets Other assets Total Accote

Answer 1

R & D is treated as an expense and goes to income statement not balance sheet.

B с D E 17600 36000 400 20000 1200 4000 800 80000 120000 120000 А 1 Assets 2 Current Assets 3 Cash 4 Acccount receivable 5 Prepaid rent expense 6 Marketable equity securities 7 Rent revenue receivable 8 Notes receivable 9 Prepaid insurance (1/3 * 2400) 10 Property Plant equipment 11 Equipment 12 Intangible Asset 13 Patent 14 Goodwill 15 Trademark 16 copyright 17 franchise net 18 Non Compete Agreement 19 20 Other Assets 21 (Prepaid insurance 2/3*2400) 22 Total assets 23 24 25 26 5600 24000 7600 4800 7200 4800 54000 1600 1600 255600