Affiliate Marketing Secrets

Identify where each balance sheet item belongs:
A. Current assets H. Non current liabilities
B. Investments I. Capital stock
C .Property Plant, Equipment J. Add’l paid in capital
D. Other revenues K. Cost of goods sold
E. Intangible assets L. Retained earnings
F. Current liabilities M. Revenues
G. Other assets
Required:
Indicate where the following items would be classified on the balance sheet.
1. Common stock 11. Stock owned in affiliated co.
2. Sinking fund to retire debt 12. Land held for future plant site.
3. Accounts receivable 13. Premium on common stock
4. Inventory 14. Copyrights
5. Prepaid insurance 15. Unearned revenues
6. Accumulated depreciation 16. Accrued interest on note receivable.
7. Bond payable 17. Cash
8. Wages payable 18. Trade accounts payable
9. Machinery no longer in use 19. Current portion of long term debt
10. Allowance for doubtful accounts 20. Goodwill

E5-3B (Classification of Balance Sheet Accounts) Assume that Clark Enterprises uses the following headings on its balance sheet.
(a) Current assets. (f) Current liabilities.
(b) Investments. (g) Long-term liabilities.
(c) Property, plant, and equipment. (h) Capital stock.
(d) Intangible assets. (i) Paid-in capital in excess of par.
(e) Other assets. (j) Retained earnings.
Instructions
Indicate by letter how each of the following usually should be classified. If an item should appear in a note to the financial statements, use the letter “N” to indicate this fact. If an item need not be reported at all on the balance sheet, use the letter “X.”
1. twenty-year issue of bonds payable that will mature within the next year. (No sinking fund exists, and refunding is not planned.).
2. Machinery retired from use and held for sale.
3. Discount on bonds payable. (Assume related companies to bonds payable in No. 1, above.)
4. Accumulated depreciation..
5. Salaries that company budget shows will be paid to employees within the next year.
6. Accrued interest on bonds payable..
7. Fully depreciated machine still in use.
8. Accrued interest on notes receivable
9. Premium on preferred stock
10. Copyrights
11. Unearned subscriptions revenue.
12. Stock owned in affiliated
13. Advances to suppliers.
14. Treasury stock
15. Unearned rent revenue.
16. Sales tax payable
17. Petty cash fund
18. Unexpired insurance.
THIS IS THE ANSWER THAT I GOT
1. Twenty-Year issue of bonds payable that will mature within the next year. (No sinking fund exists, and refunding is not planned)
(f) CURRENT LIABILITY
2. Machinery retired from use and held for sale
(a) CURRENT ASSETS
(e) OTHER ASSETS
3. Discount on bonds payable. (Assume related to bonds payable in No. 12)
(f) CURRENT LIABILITY
4. Accumulated depreciation
(c) PROPERTY, PLANT AND EQUIPMENT
5. Salaries that company budget shows will be paid to employees within the next year.
“X”
.
6. Accrued interest on bonds payable
(f) CURRENT LIABILITY
7. Fully depreciated machine still in use
(c) PROPERTY, PLANT, AND EQUIPMENT OR “N”
.
8. Accrued interest on notes receivable
(a) CURRENT ASSET
9. Premium on preferred stock
(i) PAID-IN CAPITAL IN EXCESS OF PAR
10. Copyrights
(d) INTANGIBLE ASSETS
11. Unearned subscriptions revenue
(f) CURRENT LIABILITY
.
12. Stock owned in affiliated companies
(b) INVESTMENT
13. Advances to suppliers
(a) CURRENT ASSET
.
14. Treasury stock
(a) CURRENT ASSET
(i) PAID-IN CAPITAL IN EXCESS OF PAR
15. Unearned rent revenue
(f) CURRENT LIABILITY
.
16. Sales tax payable
(f) CURRENT LIABILITY
17. Petty Cash fund
(a) CURRENT ASSET
18. Unexpired Insurance
(a) CURRENT ASSET

Langrova Inc. has the following amounts included in its general ledger at December 31, 2010.
Organization costs $24,000
Trademarks 20,000
Discount on bonds payable 35,000
Deposits with advertising agency for ads to promote goodwill of company 10,000
Excess of cost over fair value of net identifiable assets of acquired subsidiary 75,000
Cost of equipment acquired for research and development projects; the
equipment has an alternative future use 90,000
Costs of developing a secret formula for a product that is expected to
be marketed for at least 20 years 80,000
On the basis of the information above, compute the total amount to be reported by Langrova for intangible assets on its balance sheet at December 31, 2010. Equipment has alternative future use.

PepsiCo, Inc. and Subsidiaries
December 31, 2005 and December 25, 2004
(in millions except per share amounts) 2005 2004
ASSETS
Current Assets
Cash and cash equivalents………………………..… $ 1,716 $ 1,280
Short-term investments ………………………………….… 3,166 2,165
4,882 3,445
Accounts and notes receivable, net……………………………….… 3,261 2,999
Inventories………………………… 1,693 1,541
Prepaid expenses and other current assets…………………………….… 618 654
Total Current Assets ………………………………….… 10,454 8,639
Property, Plant and Equipment, net ………………………………….… 8,681 8,149
Amortizable Intangible Assets, net……………………………….… 530 598
Goodwill…………………………… 4,088 3,909
Other nonamortizable intangible assets…………………………….… 1,086 933
Nonamortizable Intangible Assets…………………………….… 5,174 4,842
Investments in Noncontrolled Affiliates ………………………………….… 3,485 3,284
Other Assets ………………………………….… 3,403 2,475
Total Assets…………………………….… $31,727 $27,987