Question

Patrick Corporation adjusted trial balance contained the following assets accounts at December 31, 2014: Prepaid Rent 12,000; Goodwill 50,000; Franchise Fees Receivable 2,000; Franchises 47,000; Patents 33,000; Trademarks 10,000. Prepare the intangible assets section of the balance sheet.

Answer 1

The intangible assets section of the balance sheet should include the values of Goodwill, Franchises, Patents, and Trademarks. Prepaid Rent and Franchise Fees Receivable are not intangible assets. The total value of Patrick Corporation’s intangible assets at December 31, 2014, would be $140,000.

Step-by-step explanation:

The student is requesting assistance in preparing the intangible assets section of the balance sheet for Patrick Corporation. The following assets were listed at December 31, 2014: Goodwill ($50,000), Franchises ($47,000), Patents ($33,000), and Trademarks ($10,000). Prepaid Rent and Franchise Fees Receivable are not considered intangible assets, so they are excluded from this section. Therefore, the intangible assets section would be itemized as follows:

• Goodwill $50,000
• Franchises $47,000
• Patents $33,000
• Trademarks $10,000

The total value of intangible assets.